July 3: Carl Hess on why alternatives are still on the menu

Carl Hess, global head of investment consulting at Watson Wyatt, on a recent survey showing a decline of only 1 per cent in the value of assets under management against a fall in equity markets of 40 per cent indicating the real story is about inflows. He says pension funds remain committed to diversifying into alternative assets to manage risk and are looking in particular for distressed assets of all types.