NEW YORK (HedgeWorld.com)–Corporate and public pension plans polled by JP Morgan Fleming Asset Management are more decisive than they were last year about shifting their asset allocation and are more inclined to use alternatives to achieve their goals.
Asked about their asset allocation plans, 35% of the 80 participants in the U.S. pension plan outlook poll said they will change their regular allocation either to enhance returns or to reduce risk, while 46% said they are not making changes. Only 19% were undecided, down from 40% the year before.
Among those reworking their portfolios in order to reduce risk, 65% are doing so by adding alternative investments. Last year this statistic was 46%. And of those making changes to enhance returns, nearly half are taking the alternative investment route. Alternatives were defined as hedge funds, private equity and real estate.