Pension funds investment in alternative assets rising

THE TOTAL value invested by pension funds in alternative assets worldwide hit close to $1 trillion (£626bn) last year.

Alternative assets managed on behalf of pension funds by the world’s largest fund managers grew 16 per cent to $952bn, according to research produced by Towers Watson in conjunction with the Financial Times.

Total assets under management (AUM) for these managers increased by 12 per cent to $1.9 trillion, meaning half of their assets are invested by pension funds.

“Institutional investors continue to diversify into the full range of alternative assets, as the benefits of diversification become apparent and certain asset classes become more accessible,” said Towers Watson global head of research Craig Baker.