U.K. pension funds decreased their equity allocations and increased hedge fund allocations this year, according to a survey by Baring Asset Management. Overall equity allocations dropped to 63.9% this year, down from 70.8% in 2006. Some 47.8% of respondents invest in single-strategy hedge funds or funds of funds, a dramatic rise from 17% in 2006. Still, hedge funds account for only 3.7% of fund assets, up from 3.4% last year.
The poll also found that 50.5% of officials believe global equity markets will increase in value over the next 12 months. Korea came in first. Respondents were least confident of the prospects for the United States.
Baring Asset polled officials at 24 of the largest 100 U.K. pension funds in October.