The latest research from Cliffwater, a Los Angeles-based alternative asset consultant to institutional investors, claims the best-performing public retirement funds have above-average allocations to alternative asset classes. The top 25 performing funds over a 10-year annualized period had an average allocation of 29 percent to alternatives, according to Cliffwater. By comparison, the average allocation to alternatives was 25 percent for all public pension funds. The one notable exception to the trend was the Oklahoma Teachers retirement fund, which happens to be the top-performing fund on Cliffwater's ranking after posting a 10-year annualized return of 8.8 percent. Cliffwater's analysts said the selection of traditional managers accounted for the fund's performance. There is no arguing institutional investors' growing interest in alternatives in recent years. Last year, state pension funds added another 1 percent to alternatives, mostly moving money from fixed-income. In 2006, the average public fund allocated a mere 10 percent to alternatives, significantly lower than today's average. Take a look at the slideshow of the top 10 best-performing public funds according to Cliffwater, and their average 10-year annualized return.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.