mercer study: Alpha-hungry investors looking to high-yield securities for a boost.(Brief Article)(Statistical Data Included)

Pensions & Investments, September, 2001 by Kovaleski, Dave

LOUISVILLE, Ky. - Looking for more alpha from their fixed-income portfolios, plan sponsors are starting to cast their eyes on high-yield securities. Hiring activity among large defined benefit plan sponsors has picked up this year and is expected to increase dramatically in the next 12 to 18 months, according to the U.S.

Institutional Market 2001 Trends Report issued by Mercer Manager Advisory Services, Louisville. Mercer projects the number of high-yield placements will double in the next year as 4% of pension funds with more than $1 billion in assets plan to hire high-yield managers, up from 2% a year earlier. David Holmes, consultant with Mercer, projects 35 placements in the next year. By comparison, Mercer tracked eight high-yield placements in the...

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