Recent IRS notices suggest federal regulators are taking a closer look at some tax-alpha strategies and could impose additional restrictions.
Leverage can distort managers’ results, making them look better than they are, its study charges.
Some 86% now invest in alternatives, says Nuveen survey.
Equity holdings fall by 22% in 20 years as pensions turn to alts in search of alpha.
Asset class shrinking, and pension will need to allocate at least $3 billion more than last fiscal year to sustain 8% target.