State Street Corporation has released its third institutional investor hedge fund study. State Street conducted the study late last year in conjunction with the 2006 Global Absolute Return Congress (Global ARC).
Asset owners participating in the study included representatives from global corporate pensions, public and government pensions, and endowments and foundations, with investable assets totaling more than USD1 trillion.
According to State Street’s study, more than half of respondents indicated that their governing bodies are more comfortable investing in hedge funds today than they were 12 months ago. Reinforcing this interest, more than half of boards also spend 15 percent or more of their time on the subject.
“The findings of our study reinforce the industry trend we’ve been witnessing among our client base – investment boards are overwhelmingly accepting that hedge funds are a viable option for their investment allocations,” says Gary Enos, the executive vice president and head of State Street’s alternative investment servicing business. “They are also discovering the various ways hedge funds can be incorporated into portfolios based upon investors’ risk appetite, return targets and overall investment objectives.”