Imogen Dillon-Hatcher, FTSE Group EMEA

Pension funds generally invest in hedge funds because of the perceived diversification benefits of the asset class.

However, some financial experts believe many funds tend to be highly correlated to the market they invest in, therefore serving as mere providers of beta rather than alpha - albeit at a higher cost level than passive investment products.

With a long-term investment horizon, pension funds tend to prefer lower-cost products.

This explains the popularity of index-linked products.

The real

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here