US Domestic Stock Holdings Remain Below 50 Per Cent Despite Marginal Growth

A report by Greenwich Associates, examining the investment strategies of the largest US corporate and public pension funds, endowments and foundations, has revealed that the total domestic stock holdings inched up slightly from 46.6 per cent of overall assets in 2002 to 46.9 per cent in 2003. Assets had slipped below 50 per cent two years ago for the first time since1996. At the same time however, passive stocks jumped from 17.5 per cent to 18.9 per cent of portfolios, said Greenwich. Fixed-income allocations dropped about a percentage point in 2003. Funds’ commitments to international equity remained level, despite the fact that international markets outperformed the US last year. Institutions continued to be drawn to hedge funds, increasing their allocations to the sector by 36 per cent in 2003, and equity real estate allocations grew by almost 10 per cent, although absolute allocations in both cases remained small, noted the research.

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