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Pension Funds Have Welcomed Increased Hedge Fund Regulation, Report Suggests

by Robin Pilgrim, LawAndTax-News.com, London

28 July 2005

Speaking to Reuters this week, Anthony Todd, chief executive of investment manager Aspect Capital suggested that increasing regulation of hedge fund managers by the Financial Services Authority has increased the appetite of traditionally risk-averse institutional investors such as pension funds for the riskier investment vehicles.

"Five years ago many investors shunned the industry. They saw it as the Wild West," he told the news service, continuing:

"The FSA has done an excellent job of raising the barriers and it's a far more robust industry now...it has become more palatable to institutions."

According to recent estimates, institutions such as insurance and pension funds account for a great deal of the money invested in hedge funds over the last few years, as they have been looking to diversify away from the stock market since the bursting of the technology bubble in 2000.

A comprehensive report in our Intelligence Report series examining offshore investment, offshore stock exchanges, and hedge funds is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp

 

 






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