Investing in the alternatives
British institutions increased investments in hedge funds, private equity and property by a third in the past three years at the expense of equities, JP Morgan Asset Management said.
A study based on 125 corporate and public pension funds as well as institutions including endowments, showed allocations to these so-called alternative investments have risen to 28 per cent of portfolios on average, against 21 per cent three years ago.
"This trend is expected to continue with respondents to the survey indicating they expect their allocation to alternatives to rise to 31 per cent over the next two to three years, at the expense of equities," JP Morgan said.
Institutions have been shifting away from equity to avoid high volatility since the credit crisis.