Private client managers and stockbrokers in the UK have increased their clients' investments into hedge funds by an average of 2.5 percentage points over the past 12 months, following declines in the more traditional asset classes.

In a survey carried out by the Association of Private Client Investment Managers and Stockbrokers, fund managers have boosted their allocation to hedge funds in income portfolios to 2.5%, from a zero allocation a year ago. They have also increased their weighting in both growth and balance client portfolios from an average of 5% last year to 7.5% at the end of the second quarter.