"When asked which managers were responsible for the pension fund’s derivatives portfolio, Urbanek, the Illinois TRS spokesman, said OTC derivatives positions are scattered across each asset class because they are “complementary positions” within each portfolio."
http://news.medill.northwestern.edu/chicago/news.aspx?id=166...

Pension Reform in Southeastern Europe
"A second potential threat is introduced when pension funds in devel- oping countries are allowed to invest in alternative asset classes such as hedge funds, private equity, and real estate. Alternative asset classes are beneficial in the portfolio management context, as they are uncorrelated with traditional assets (stocks and bonds) and thus provide scope for improvement of the risk-return relationship."
http://siteresources.worldbank.org/INTECA/Resources/pension_...