tailieunhanh - ATTRACTING PENSION PLAN ASSETS - WHAT ALTERNATIVE INVESTMENT MANAGERS NEED TO KNOW

Although the triggering market events occurred over the two years at the beginning of our review period, direct support continued in later years as well. In some of these instances, fund sponsors delayed direct support by putting in place multi-year guarantees. For example, the SDIT Prime Obligation Fund, which only shows support for the fiscal year ended January 31, 2010, disclosed that on November 8, 2007 it entered into a CSA with SEI Investment Company providing that SEI would cover any losses realized on sales of securities that caused the mark to market NAV of the fund to fall below. | us assetmanagement Attracting pension plan assets What alternative investment managers need to know pwc At a glance Retirement plan sponsors are continuing to give alternative investments including hedge funds and private equity funds a closer look. They continue to be attracted by the lower historical volatility higher absolute and risk-adjusted returns and varied correlations these funds can offer relative to traditional investment advisor portfolios. While plan sponsors continue to be attracted to the performance characteristics of alternative investments they also are seeking increased levels of information on their operational complexities in order to address the total risk investment and operational funds pose to pension assets. Alternative investments must recognize the holistic nature of additional information data requests. This allows managers flexibility in promptly and effectively satisfying increased transparency requirements of institutional investors. Here is a look towards ways to increase institutional investor trust and ultimately satisfy as well as attract plan sponsors. Attracting pension plan assets The heart of the matter Retirement plan sponsors are taking a closer look at hedge fund and private equity fund investing. Retirement plan sponsors searching for higher potential performance without comparably higher potential risk are looking more closely at alternative investments including hedge funds and private equity funds as another investment option. These investments have historically displayed lower levels of volatility higher absolute and risk-adjusted returns and varied correlations compared to traditional markets as seen in the table below. While other investment and operational factors may increase the risks these vehicles pose to an institutional portfolio based solely upon the statistics listed below hedge and private equity funds may be a valuable addition to traditional institutional investment portfolios. Performance .