Hedge funds are among the fastest-growing sector of the global investment management industry and despite the occasional dent to their image, they continue to be highly sought after by high net worth individuals and family offices.

Yet uptake among institutional clients, such as pension schemes, has been altogether slower, especially in the UK, where interest lags well behind that in continental Europe and the US. A new report from Asterias, a hedge fund consultancy, says that only 3% of UK pension funds have hedge fund investments.