A report by Moody's Investor Service shows that as pension funds increase their allocation to alternatives, hedge fund managers will have to lower fees, change their business strategies and reduce their risk tolerance.
The manager of the world's largest mutual fund has raised more than $1.5 billion for a private pool to buy debt such as troubled commercial and residential mortgages from banks looking to improve their balance sheets.
A new survey by KPMG, a global public accounting firm, finds that using the consumer price index (CPI) as the measure of pension inflation will reduce the calculated value of private sector liabilities by nearly $98 billion (£60 billion) by the end of the year.
UK pensions are increasingly transferring risk to insurance companies, driven by M&A activity, a growing number of closures and part-closures of defined benefit pension schemes, and concerns over longevity risk.
In an effort to gain exposure to long-term, liability matching assets, the $13.6 billion Aviva Staff Pension Scheme is looking to boost its allocation to real estate-related assets, reflecting the growth of the sector since the real estate market collapsed during the crisis.
Joe Flood, editor-at-large of aiCIO Magazine, appeared on The Brian Lehrer Show today to speak about aiCIO Magazine's exclusive cover story on New York City Mayor Michael Bloomberg's attempts to overhaul the city's underfunded pension system.
The Texas Teacher Retirement System (TRS) may double the amount it allocates to hedge funds after a state representative introduced a bill raising the cap on investment in the asset class.
The Caisse de dépôt et placement du Québec announced that it has increased its investments in publicly traded Québec companies by more than $800 million.
