Mercer Investment Consulting is pleased to announce the release of its Fund of Hedge Funds Survey for 2006.

Fund of hedge funds (FoHF) utilize a multi-manager, multi-strategy approach to invest in underlying hedge funds. Many fund sponsors view FoHF as vehicles that offer diversification across hedge fund strategies, reduce manager-specific risk, and provide a layer of professional oversight. Although they have gained increased acceptance around the world, their use is far from widespread.

Surprisingly, the survey found that despite growing interest in the asset class, less than a quarter of pension schemes that invest in funds of hedge funds are satisfied with their investment returns. Other highlights of the study include:

• 54% intend to increase their allocation to hedge funds within two years
• Of those not currently invested in FoHF, 19% intend to do so
• 60% of non-investors say fees are a barrier

The free survey is available in pdf format, and can be ordered on-line.

Contents of the survey include

• FoHF’s roles in institutional portfolios
• Satisfaction with FoHF managers
• Barriers to new investment in FoHF
• Future use of FOHF

Please contact us if you seek assistance or have any questions.

Mercer is a leading global provider of investment consulting services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing portfolio management. We create value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.