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Ivo Jenniskens From Komfie Manalo, Opalesque Asia:
The regulatory environment in the Netherlands makes it difficult for pension funds to invest in hedge funds. Compounding the situation for the local hedge funds industry is the governance aspect, according to the hedge fund investors who took part in the latest Opalesque Netherlands Roundtable.
Ivo Jenniskens, Investment Manager at a multi-investment office Providence Capital, declared, "From what we have experienced with a pension fund as one of our clients, the regulatory environment in the Netherlands is not very positive for pension funds to invest in hedge funds. This pension fund was invested in hedge funds. Despite the fact that they outperformed the markets, including in 2008, the pension fund had to sell almost its entire hedge fund exposure because the regulator, the Dutch Central Bank, sees hedge funds as a higher risk than equity. Pension funds have to keep more collateral for hedge funds, it weighs heavier in their risk budget than for equity. The regulator says to those who are invested in hedge funds, 'we do not know what these hedge funds are exactly doing’ and the pension fund should know that. For smaller pension fund Boards it is almost impossible to have enough knowledge."
Because of the insufficient know-how in how a hedge fund ticks, companies are ...................... To view our full article Click here
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