Excerpt
Excerpt
Looking for Alternatives: Pension Investments around the World, 2008 to 2017. Victoria Ivashina, Josh Lerner, August 24, 2018, Paper, "Using hitherto-unexplored data, this paper provides a first look into pension funds’ allocations to alternative asset classes around the world. On average, in the ten years following the financial crisis, allocations to private equity and real estate nearly doubled, representing about 20% of assets under management in 2017 for pensions in many of the largest economies. Our sample indicates a $1.8 trillion shift to alternatives between 2008 and 2017. This phenomenon equally affected public and private pension funds, as well as funds of all sizes. This shift does not appear to be a consequence of mechanical factors such as increase in drawn capital or expected returns, but rather reflects a proactive portfolio allocation response to perceived investment opportunities. The extent of the shift to Alts is more pronounced for nations with lower long-term interest rate environment." Link