The uptake of hedge funds by the pension funds of London’s boroughs remains relatively low. Currently just two London schemes – Lambeth and Newham - have any holdings in the asset class. However, they could be joined shortly by up four additional London Borough pension funds that are poised to take their first steps in the asset class in the next 12 months. These investors include London Borough of Camden Pension Fund, which has been considering investing in alternatives since 2008 but put all potential investments on hold until after the UK general election in May 2010. Following the elections it is still actively looking at the asset class and is likely to begin investing in 2011.
Some London Borough Pension Schemes remain unconvinced by hedge funds and alternatives as a whole. A further 13 London Boroughs have informed Preqin that they have no intention of investing in hedge funds over the shorter term. However, although some of these will not begin investing in hedge funds over the next 12 months, such as London Borough of Haringey Pension Scheme, they have informed Preqin that they have not ruled out making a maiden allocation to hedge funds over the longer term.
For more information on the 42 UK-based public pension funds investing in hedge funds or to view the full list of 2,500 institutional investors in hedge funds on the Preqin database please visit www.preqin.com/wizTrial.aspx to arrange a demo with our client service team.