Trends In Pension Funds Sector Could Benefit Guernsey

Guernsey's fund industry has the potential to benefit substantially from trends within the global pension funds sector, according to new research by State Street.

Guernsey-based Gerald Hough, Managing Director of State Street Global Services, Channel Islands, said recent figures suggesting that pension funds are increasing their exposure to alternative assets – particularly private equity – faster than any other investor group as weak investment returns, combined with longer life expectancy for retirees, have left many funds facing a funding gap.

"Alternative assets traditionally made up just a small part of pension funds' portfolios compared with equities and fixed income products, but that is changing," said Mr Hough.