Prudential has made its first allocation to hedge funds to funds of funds group Grosvenor Capital Management in the US.
The With Profit Life Fund which all Prudential Life Assurance's endowment and life policies feed into is worth some $65bn. Prudential intends to allocate up to 5% or $3.25bn to alternative assets, which includes hedge funds as well as venture capital and private equity.
Clare Staley, group media relations manager, said: 'This is the first time we have invested in hedge funds. We