See without-profits policy, institutional investor, guaranteed annuity rate, sipps, occupational pension scheme, stakeholder pension, allocation rate, final salary pension scheme, annuity.
Pension fund allocations are another cash flow variable, but I discount all this.
Pension fund allocations to hedge funds increased 4% year-over-year, with the top 10 biggest institutional investors increasing their exposure to the asset class by 10%, or $183 billion.
It also raises ethical concerns due to a lack of transparency and the potential for "pay to play" schemes, in which placement agents offer financial incentives, such as campaign contributions, to the people responsible for making decisions about pension fund allocations.
The move, to be undertaken this spring, will reduce the pension fund allocation in domestic equities to 45percentt from 50percentt.
New research from Greenwich Associates, a research firm, shows that, despite all the talk, European pension funds' allocation to hedge funds has stayed flat.
They advise pensions on allocation (stocks versus bonds versus commodities) and protect them from overcharging and chicanery.
Some of this outperformance stems from the relative strength of Canadian stockmarkets and property, to which Canadian pension funds have higher allocations than others.
As their stocks increase in value, pension funds may increase their allocation of funds to real estate, to keep it a fixed portion of their portfolios, he said.
Pension funds have increased their allocation to property, retail investors are starting to take an interest, and foreign money continues to pour in.
