The tsunamis of financial risk Pension funds are facing the prospect of an exponential increase in withdrawals from retiring subscribers -- despite the shrinking value of their asset base. In this scenario, hedge funds provide a powerful tool for effective liability hedging. Pension funds are looking for the last hope to cover for their unfunded liabilities.
The specter of inflation has increased the appetite for capital preservation among endowments and foundations – and these investors have targeted rates of return that can’t be achieved with today’s low-yielding bonds. Alternative investments in global real estate, natural resources have a chance of making up for the low returns.
