News & Analysis

All eyes on private equity

All eyes on private equity 2005-07-01 Staff Writer <b>Average US pension allocation mix&#42</b><br /><table><tr><td><b>To</b></td><td><b>tal (125)</b></td><td><b>Corporate (64)</b></td><td><b>

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Average US pension allocation mix&#42

To tal (125) Corporate (64) Public (50)
Equity
Domestic Equities 46% 46% 45%
Foreign Equities 17 17 16
Total Equity 63% 63% 61%
Fixed Income
Domestic Fixed Income 26 25 27
Foreign Fixed Income 1 1 1
Total Fixed Income 27% 26% 28%
Alternatives/other
Cash 0.9 1.0 0.9
Real Estate ? public 1.1 0.6 1.6
Real Estate ? private 3.0 2.7 3.2
Private Equity 3.1 3.5 2.8
Hedge Funds 1.2 1.7 0.3
Commodities 0.2 0.3 0.2
Miscellaneous 0.8 0.8 1.6
Total alternatives/other 10% 11% 11%

Question posed to US pensions: ldquo;Which of the following would you be most interested in using to???

&#42% of respondents
Deliver higher Diversify Hedge
returns (81)&#42 risk (91) inflation (60)
Private Equity 75% 53% NA
Emerging Markets Equity 72 60 NA
Private Real Estate 67 66 58%
Corporate High Yield Bonds 58 48 NA
Commodities 58 51 52
Inflation Protected
Instruments (TIPS) 54 63 78
Public Real Estate (REITs) 53 47 35
Hedge Funds 52 55 NA
Long Only Absolute
Return Strategies 49 42 NA
Currency as Source of Alpha 46 36 NA
Tactical Asset Allocation 46 36 NA