Pension Space Could Up HF Exposure in 2007

Date: Tuesday, February 13, 2007
Author: HFN Daily Report

A "drastic change" could see more corporate pension money flow into the hedge fund space, according to Russell Investment Group.

The Tacoma, Wash., company issued a report that claimed pension policy reform is going to spur a "breaking up of the herd."

A press release heralding the Russell Pension Report 2007 did not specify the nature of the reform, but noted it would press the space to "try to maximize return while matching liability" via unconventional asset allocation.

The survey went on to claim long-short strategy might see more inflow as a result of the widespread break from "traditional caution."

The survey went on to conclude that return seeking and liability matching-forming a fixed income portfolio to match the liability cash flow-are "no longer mutually exclusive.