February 14, 2011
In a recent roundtable organized by Pensions Management magazine, Peter Ball, Head of U.K. Institutional Business and Nick White, Managing Director for Highbridge Capital Management, joined several senior investment professionals from Mercer, Aon Hewitt and Pitman Trustees for a roundtable discussion on trends in alternative investing among U.K. pension plans.
Their discussion of alternatives (hedge funds, private equity, real estate and infrastructure) suggests several similarities with U.S. pension plans, namely:
- An interest in alternatives as a way to diversify and "de-risk" equity portfolios
- A heightened awareness of the liquidity characteristics of alternatives
- A developing view of alternatives, not as a separate asset class, but rather as an extension of equity, fixed income or commodities
For more on how these experts view the outlooks for and roles of alternative strategies within U.K. pension portfolios please see the ROUNDTABLE article appearing in the February 2011 issue of Pensions Management.