Business Day – RETIREMENT funds should include hedge funds in their investment plans to ensure they construct optimal portfolios to protect SA\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s limited savings.<\/p>\n
Warren Brown, Head of Fixed Interest and Financial Modelling at Old Mutual\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s SYmmETYRY Multi- manager said: “The \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2buyer beware\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 principle is the safest and most meaningful way for trustees to approach all of their investment opportunities, including hedge funds.<\/p>\n
Brown was speaking in Cape Town today in reaction to concerns about the lack of a clear regulatory and taxation regime for hedge funds.<\/p>\n
“All of the perceived risks associated with hedge funds can be managed in a similar way to those associated with long-only funds.<\/p>\n
“SA\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s 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.”<\/p>\n
The Pension Fund Act stipulates that a maximum of 2,5% can be invested in unlisted entities, which would include hedge funds.<\/p>\n