Alternative Asset Analysis (AAA), said that figures showing an increase in pension fund exposure to alternatives is the result of more investor willingness.
Boston, MA, USA, July 12, 2011 -- Alternative Asset Analysis (AAA), a research and advocacy organization focusing on alternative investments, said that figures showing an increase in pension fund exposure to alternatives is the result of more investor willingness.
“Pension fund clients are increasingly open to alternative investments,” stated AAA’s analysis partner, Anthony Johnson. He added, “Pension clients realise now more than ever the need for diversification within a portfolio - with many actively encouraging alternative investments as a less-risky and potentially more lucrative option to equities.”
The new Towers Watson Global Pension Asset Study showed that the share of pension funds now invested in alternatives has increased to 19 per cent as of 2010, up from an average of just seven per cent in 2000.
Meanwhile, the amount of assets under management increased by an average of 16 per cent for the top 100 pension fund managers who responded to Tower Watson’s Global Alternatives Survey, according to a report in the Financial Times.
Towers Watson’s head of investment research, Craig Baker, told the FT that there is a growing trend among pension fund managers towards alternatives over equities. The main reason is simply because more diversified pension plans saw lower losses than those with a higher exposure to equities during the financial crisis.
Both Towers Watson and AAA claim that making considerable gains through investing in alternatives is more straightforward and easier to achieve these days. Mr Johnson stated, “There are an increasing number of options open to those wishing to put their money in alternative assets, with many of the most exciting opportunities coming out of emerging economies such as Brazil. Greenwood Management, for example, is a business that offers people the chance to invest as little as EUR 10,000 in managed forestry projects that help to reduce the dependency on illegally logged timber while providing an investment product that offers investors a large amount of flexibility.”
AAA claims that forestry investments are unique as the asset will continue to grow until the investor decides that it is the right time to sell. “If timber is fetching poor prices when trees reach maturity, investors can simply wait until the market improves before they sell their assets - and they will, of course, continue to grow in the meantime,” added Mr Johnson.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
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