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July 31, 2005
FSA gets kudos on a good job done!
After the Financial Services Authority announced regulation of hedge fund mangers, the industry in general has gained more confidence in institutions such as pension funds. This was revealed recently by Anthony Todd, chief executive officer of Aspect Capital. Todd explained that the fact that the funds have to register with FSA has increased confidence of investors in the funds. Referring to the industry before FSA regulation as ‘Wild West’, he said that earlier industry failed to generate a sense of assurance amongst the investors and therefore quite a lot of investors preferred to stay out of it. Commending FSA on its good job, he said that with some regulation in place, the industry has now become more robust and is more palatable to the institutions. After the bloodshed in the stock market in 2000, investors such as pension funds are progressively turning away from the stock market. They are instead looking at hedge funds to help them generate the required results. Just to state a point, the global industry has grown to $1 trillion from $500 billion in just five years. Reuters.co.uk reports:
“Institutions including life insurance firms account for much of the new money that has been invested in hedge funds in recent years. Globally, the industry is now estimated to manage around $1 trillion (0.6 trillion pounds) compared with around $500 billion five years ago.”
Read more: Rules for managers boost appeal of hedge funds
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