August 18, 2006

Dare Trustees Trust Hedge Funds?

Trustees of pension funds are burdened by the constant need to be on the lookout for good investment opportunities. Hedge funds are beckoning, but the trustees are wary; they do not want to play for high risks.

Of the 700 billion pounds of assets in the UK corporate pension schemes, less than 1 percent is invested in hedge funds, says Jamie Murray, head of institutional business development and sales at HSBC Republic Investments.

But this situation is set to change with an influential regulatory body for the hedge fund industry and UK pension laws that offer some form of protection. Murray predicts that hedge funds will form up to 5 percent of pension fund asset allocation in another five years’ time.

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August 18, 2006 in Regulation | Permalink




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