Trustees' perception of hedge funds as risky has led all but 8% of the UK's largest pension schemes to avoid them, even though 44% of schemes invest in private equity, another alternative investment asset class, according to a new survey.

The survey by JP Morgan Fleming Asset Management drew responses from 171 of the UK's largest pension schemes, responsible for £364bn (€528bn), last November. The report said: "None of the 10 largest pensions schemes, with assets of more than £10bn, currently invests in hedge funds."