Seventy per cent of 152 institutions surveyed by Greenwich Associates, continued to move money out of US equities over the past 12 months, while more than three-quarters of respondents maintained allocations to hedge funds and private equity, with 20 per cent increasing such investments.
Institutions were more divided in their approach to international equities. While 47 per cent left allocations unchanged over the last 12 months, 31 per cent said they had reduced international equity allocations and 22 per cent had increased them.
The report revealed much of the money moved out of US equities found its way into fixed income.
Hedge fund fees fall
Hedge funds continue to feel downward pressure on fees, with average management charges at fund-of-hedge funds falling by three basis points since Q1 2008, according to Hedge Fund Research (HFR). The average management fee charged by hedge funds in Q1 2009 was 1.57 per cent, while funds-of-funds charged an average of 1.25 per cent. HFR said that during the last year, funds with lower management fees have outperformed funds with higher fees.
