Mon, Apr 23, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

South Africa's pension can allocate 10% of assets in hedge funds, but less than 1% are actually allocated

Monday, February 12, 2018

Komfie Manalo, Opalesque Asia:

South Africa's Regulation 28 of the Pension Fund Act allows pension funds to allocate at least 10% of their assets into hedge funds, a number that could translate to hundreds of billions of dollars in inflows into the industry.

However, in reality, less than 1% of South Africa's pension funds are allocated into hedge funds.

"One thing to look at is why there may be reluctance for pension funds to put any money into hedge funds," stated Udesh Naicker, head of hedge fund regulation in South Africa's, Financial Services Board (FSB) said at the latest Opalesque South Africa Roundtable.

Naicker explained that the cynical view expressed by some managers is the consultants to the pension funds actually have no vested interest in making that allocation and/or that they don't actually understand how hedge funds work. "So again, we as the regulator can't drive that allocation; that it something the industry has to drive," he continued.

The potential large amount of capital available to the hedge fund industry coming from pension funds is not lost to Steven Liptz of 36ONE Asset Management who added that the hundreds of billions of dollars from these institutional investors could be a big boost to the local fund industry which currently has......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From The dominant narrative on American shopping malls is that they're dead. Crushed by, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its