Hedge funds: Providing protection where you need it most

With the revision of Regulation 28 of the Pension Fund Act making an explicit allowance for the inclusion of hedge funds in the asset allocations of pension funds, the industry thought that it would start to see significant inflows and allocations from pension funds. Following the revision, we actually saw outflows from hedge funds; those pension funds who had already made allocations needed to bring their allocation in line with the limits of 2.5 percent for a single hedge fund and five percent for a fund of hedge funds, as well as the overarching limit of 15 percent for all alternatives (including private equity which didn’t offer the liquidity for any redemptions).

Read the full article on page 19 in the digital edition of  InvestSA  HERE.

Written by Claire Rentzke, Head of Manager Research, 27four Investment Managers.