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Significant Hedge Fund Significant Hedge Fund Asset Growth in 2013Asset Growth in 2013

Public Pensions See Public Pensions See Significant Hedge Fund Significant Hedge Fund Asset Growth in 2013Asset Growth in 2013

•According to new information from Pensions & Investments, the leading source of news and research for the institutional investment market, public pension plans with assets invested in hedge funds benefited from healthy growth last year.

•The recently published results of P&I’s annual survey of America’s biggest retirement funds show a 15.1 percent increase in assets invested directly in hedge funds for the year ending September 30, 2013, bringing the total of public pension investment in hedge funds to $115 billion. P&I notes that in recent years, many large public pension plans have moved significant amounts of money from hedge funds-of-funds into direct hedge fund investments, following in the footsteps of family offices and endowments and corporate pension plans to become a kind of “third wave” of major institutional hedge fund investors.

•However, despite last year’s impressive growth of hedge fund investments, as of September 30 the alternative investment category still represented just 3.4 percent of all defined benefit plan assets of the country’s 200 largest retirement funds. This signifies a mere 0.1 percent increase from the figure of 3.3 percent reported the year before.