Beverly Chandler, Opalesque London: Global news on pension fund investment issues from Towers Watson’s latest Global Investment Matters finds that from Germany to Japan, hedge funds and new regulations are having an impact.
The firm reports that while German investors could be pleased with
their investment performance in 2012, a number
of regulatory changes loom on the horizon, opening with the revision of the EU IORP Directive
which is expected to lead to the introduction of
risk-based capital charges.
The firm writes: "A major overhaul of German investment law is due
to come into effect by June 2013 as part of the
adoption of the EU Alternative Investment Fund
Managers Directive. Originally intended to regulate
hedge funds, the Directive has the consequence
of so-called Spezialfonds falling under its scope.
Spezialfonds are institutional fund vehicles
commonly used by pension funds to bundle their
portfolio investments to gain certain accounting
and tax advantages. The new rules will increase
the disclosure requirements for these funds
leading to an expected increase in costs."
In Japan, Towers Watson’s consultants report that after $2.5bn fraud committed by a hedge
fund manager, the Japanese corporate pension
fund system is facing a turning point. "The majority
of victims were Employees’ Pension Funds (EPFs),
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