GLOBAL - Hedge fund investing remains a risky bet as long as market volatility and inflation persists, according to PricewaterhouseCoopers' (PWC) partner John Shuttleworth.
Reinforcing his scathing commentary on the hedge fund ‘bubble’, published by PWC in August, Shuttleworth said that pension fund trustees still needed to reduce their risk deficit to weather the current market storm. He explained that hedge fund exposure could instead lead to an increase in this deficit.
Shuttleworth’s statement counters recent claims about the rising popularity of hedge funds, sparked by positive interim figures posted by global alternatives specialist Man Group (Man). The firm reported growth in assets under management by 33%, from £2.8bn at September 30, 2000 to £6.1bn at Q3, 2001.
For the half year ending September 30, 2001, Man Group’s overall pre-tax profits more than doubled from £47.5m to £97m on the same period last year.
Total asset management income increased by 154% from £32.5m at September 30, 2000 to £82.5m.
Man Group chief executive Stanley Fink said: “The Group has had an extremely successful first half, with record fund sales of £1.6bn and profits more than doubled from last year.
“The strong sales momentum has continued into the second half (2001), with our latest fund launch in October raising a record £350m of client money. In summary, the Board is very confident of the outlook for the year.”
By Janet Du Chenne
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.