European Pension Plans Stands to Benefit More From Hedge Fund Boom, Says F&C

As hedge funds continue to be among the most attractive assets in the current volatile markets, pension funds in continental Europe stand to see a sharp increase in value, more so than in the UK where hedge funds are not

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As hedge funds continue to be among the most attractive assets in the current volatile markets, pension funds in continental Europe stand to see a sharp increase in value, more so than in the UK where hedge funds are not as popular with schemes says an F&C Asset Management report.

Hedge funds are currently outperforming equities, bonds, property and cash, and because these funds have far more exposure in continental Europe, F&C expects pension plans in the region to see far greater concerns than in the UK.

“Given the scale of current pension fund deficit in the UK, it is puzzling why UK schemes are still hesitant to make full use of hedge funds in their asset allocation,” says Paul Niven, head of asset allocation at F&C Asset Management. “The historic risk of losing money is lower with hedge funds than with equity.”

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