Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

Fees are the main obstacle preventing pension schemes from investing in hedge funds
Fees are the main obstacle preventing pension schemes from investing in hedge funds

Published : 6 years ago, on

  • 38% cite high management fees as obstacle to investing in hedge funds
  • 34% say lack of transparency of additional costs hinder them when investing in hedge funds
  • 41% expect increased scrutiny from pension schemes on fees paid to hedge funds

High management fees are a key hindrance preventing pension schemes from investing in hedge funds, followed closely by a lack of transparency regarding additional costs, according to the latest survey by AMX, the first open architecture marketplace for the buying and selling of asset management services.

The research, which surveyed 200 individuals with investment responsibilities for pension schemes, claims the other obstacles to investing in hedge funds are: insufficient risk reporting (32%), difficulty of comparing fund performance (26%) and inability to govern individual funds (25%).

Oliver Jaegemann, Global Head of AMX, commented: “With pressure to reduce costs in the industry, many pension funds may naturally steer away from high management fees, leading to lower investment in hedge funds. By increasing transparency surrounding costs and fees, and streamlining these to increase cost efficiency, we believe we can encourage pension decision makers to consider investing in hedge funds – giving these pension schemes access to a wider range of options and opportunities.”

The survey also found that pension decision makers are expecting increased scrutiny from pension schemes on a range of hedge fund specifics, including fees paid (41%), costs incurred (40%), the security of assets in hedge fund investments (36%), knowing the current risks within each hedge fund investment (31%), knowing the overall risks across all hedge fund investments (31%) and the net returns generated (30%).

Jaegemann added: “In addition to increased scrutiny surrounding costs and fees, security and risk are also key areas of concern when it comes to investing in hedge funds. Clearly this is an issue which needs to be rapidly addressed in order to provide pension decision makers with the confidence to invest in these assets. By providing increased transparency across all stages of the investment process as well as additional risk oversight and an enhanced view of risk exposure, we are well placed to ease these concerns and help to facilitate greater investment in hedge funds.”

fund performanceinvestment responsibilitiespension schemes

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post