October 15, 2006

Bird’s Eye View of Investment in Continental Europe

-- By Pushpa Sathish, Staff Writer

Hedge funds are gaining attention by the day, both for their high potential to generate returns and for the headlines they make when bad bets bring down the whole house of cards. Greenwich Associates’ 2006 Continental European Investment Management Research Study reveals an insight into institutional investors in Continental Europe.

  • Institutional hedge fund investors (pension funds, banks, insurance companies) jumped up from 26 percent in 2005 to 36 percent this year, with another 10 percent planning to invest in hedge funds over the next few months.   
  • Institutional assets grew by 7 percent, driven by the equity and money markets and fixed income.
  • Allocations to private equity and hedge funds form 2 percent of total assets, the figure remaining the same in 2004 and 2005.
  • Real estate allocations have decreased from 6 to 5 percent over the course of a year.
  • As much as 41 percent of Continental institutions expect allocations in equity and hedge funds to increase by 2009, while only 1 percent expect them to decline. 
  • The average institutional investor in hedge funds has EUR 200 million invested in the asset class.
  • More than 33 percent of institutional assets are managed by external investment management firms.
  • Each continental institution raised the number of asset managers it uses from less than 10 in 2005 to nearly 11 a year later.
  • Total assets under management by external firms rose to 34 percent from 31.

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October 15, 2006 in Emerging Markets | Permalink




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