GREENWICH, Conn. (HedgeWorld.com)–Canadian pension plans and endowment funds are taking a keen interest in hedge funds, according to a recent survey of U.S. research firm Greenwich Associates.
Greenwich said its research reveals widespread changes in the Canadian market in a year that has been challenging to plan sponsors.
Greenwich interviewed 264 Canadian corporate pension plans, public pension plans and endowment funds on investment trends in April and May. Researchers found that diversification in the number of managers and strategy is growing as the number of plan sponsors and endowment funds investing in hedge funds is set to increase.
Of the respondents, 9% now invest some proportion of their portfolios in hedge funds, up from 8% the year before. And of those not currently investing in hedge funds, 11% said they expect to in the coming year.
In Canada, hedge fund use is most popular among endowments and foundations, which invest 1.7% of their total assets in hedge funds, according to Greenwich. Public and provincial funds invest 1.1% of total assets, corporate funds invest 0.4% and Canadian subsidiaries of U.S. corporations invest just 0.1% of their total assets in hedge funds.