Global institutional investors have taken to direct hedge fund investing following the global financial crisis, with $820 billion from pensions and sovereign wealth funds now directly invested in hedge funds, according to a new survey.
The Citi Prime Finance Survey found that small to medium hedge funds managing between $1 billion and $5 billion experienced the largest net growth in 2010.
The survey found that pensions and sovereign wealth funds have not only been increasing their hedge fund investment programs, but are taking a more active and “direct” approach to allocating these investments, as opposed to using traditional fund of funds.
Size, maturity and stability were found to be equally important in reaching institutional investors.
The survey looked at 60 major investors representing $1.65 trillion in assets under management, as well as hedge fund managers representing $186 billion in assets under management.
New research has shown that investing in alternative assets and using active management has, to this point, delivered strong results for Australian super funds.
Australia’s $4 trillion superannuation industry is fundamentally reshaping the nation’s external accounts, setting the stage for a more sustainable current account surplus despite weaker commodity markets.
Rest has expanded its portfolio of renewable energy infrastructure by supporting a Victorian solar farm and battery project.
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.