About $30.3 billion in assets went to global equity and fixed-income managers hired in 2007, according to data by Eager, Davis & Holmes. That represents 12.4% of the $244 billion investors allocated to new hires for the year, compared with only 1.9% between 2002 and 2006, according to the firms Tracker Hiring Analytics 2007 Year End Report: U.S. Institutional Hiring Analysis, which tracks the publicly reported hiring activities of public and corporate retirement plans and foundations and endowments.
Alternatives had the highest percentage of assets issued to new hires with 32% in 2007, up from 17.1% for the previous five years; 10.6% went to passive domestic equity, vs. 12.1%; 9.6% to real estate, compared to 7.1%; 8.8% to active domestic equity, vs. 16%; and 6.2% to international active equity, compared to 12.9%.
The movement to alternatives continues unabated. The root drivers here are clearly performance and diversification, said Glenn Davis, partner at Eager, Davis. The report tracked 2,314 hires in 2007.