Business Day – RETIREMENT funds should include hedge funds in their investment plans to ensure they construct optimal portfolios to protect SA’s limited savings.
Warren Brown, Head of Fixed Interest and Financial Modelling at Old Mutual’s SYmmETYRY Multi- manager said: “The ’buyer beware’ principle is the safest and most meaningful way for trustees to approach all of their investment opportunities, including hedge funds.
Brown was speaking in Cape Town today in reaction to concerns about the lack of a clear regulatory and taxation regime for hedge funds.
“All of the perceived risks associated with hedge funds can be managed in a similar way to those associated with long-only funds.
“SA’s already regulated asset management industry is littered with failed companies, while respected studies show that risk diversification is improved by including hedge funds in portfolios.”
The Pension Fund Act stipulates that a maximum of 2,5% can be invested in unlisted entities, which would include hedge funds.
