Hedge Fund

Stephanie Baxter considers whether Calpers’ shock hedge fund exit will resonate across UK pension schemes

UK schemes have reduced allocations to equities and increased holdings of bonds, cash and hedge funds, according to the latest edition of the Purple Book.

Institutional investors continue to diversify portfolios, tripling the number of global infrastructure mandates awarded over 2012, according to figures from Towers Watson.

The £1.5bn Willis Pension Scheme has chosen Towers Watson to manage a large part of its hedge fund portfolio.

Towers Watson said it has increased returns by persuading a selection of hedge fund managers to cut their performance fees.

The £1bn London Borough of Camden pension fund has appointed BlueCrest Capital Management to run a £50m fund of hedge fund mandate.

Defined benefit pension fund investors should diversify their portfolios into alternative assets to hedge against rising inflation and equity volatility, Morgan Stanley say.

Institutional investor concern over hedge fund transparency is driving up risk management standards, leading the industry to become more "institutionalised", an SEI report finds.

Camden Borough Council is hunting for an additional independent advisory firm to help its £900m pension scheme cope with the ever more challenging investment environment.

Pension funds should look to hedge funds as a "tool" in their portfolio, as a means to diversify and protect against volatility.