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04 April 2011

IPE: Fitch forecasts further shift to alternatives for pension funds


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Mainstream asset classes are "under threat" from alternatives, as risk-averse European pension schemes diversify into more exotic asset classes in a bid to mitigate market volatility, according to ratings agency Fitch.


EMEA head, Aymeric Poizot, and Fitch director, Charlotte Quiniou, forecast a future pensions market dominated by renewed market volatility, resulting in more regulation and risk aversion. They suggested mainstream asset classes were "under threat" from defined contribution (DC) schemes moving away from portfolios dominated by bonds and equities.

In a survey of pension plans looking to increase their allocation to alternative investments, funds of hedge funds topped the poll for mainland European pension schemes, followed by private equity funds of funds and emerging market debt.

DC schemes currently make up around 40% of the European total, but with significant variation across markets.

Full article  



© IPE International Publishers Ltd.


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