Property is the most popular alternative investment for global pension funds, according to research by Watson Wyatt.
The research shows property investment accounts for 65% of all pension fund investments, followed by fund of hedge funds at 19% and private equity at 14%. Commodities account for just 2% of pension fund investments. Paul Deane-Williams, senior investment consultant at Watson Wyatt, told IFAonline real estate is so popular because it is a well-established asset class. He says alternatives such as private equity have only had significant investment over the past five years. However, private equity investment is likely to grow as pension funds try to diversify from equity risk premium, De...
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