Global fund managers believe equities will have a tougher time in 2006, lagging the double-digit gains many major global stock markets enjoyed in 2005, a study says.
The Mercer Investment Consulting survey also found that powerful pension funds plan to diversify to alternative investments, such as hedge funds, commodities and infrastructure projects, this year in a bid to boost their returns.
“Hedge funds, for example, are not driven by what the markets are doing,” Mercer’s Peter Muldowney said, “so it provides an opportunity to invest in something that will give you a different return pattern. When you combine all these things — equities and hedge funds — it just gives you better odds of doing well.”
