UK - Local authority pension schemes will only invest in hedge funds if fund managers provide more education and information about them, Aegon Asset Management claims.
Business development manager Paul Ritchie said some local authorities were showing interest in hedge funds but often found it difficult to get the idea past their investment committees.
He added: “It is not so much the risk.
“They like to be able to say what they have invested in and, on a regular basis, say exactly what they hold and what the investment comprises.”
Ritchie said this was the reason local authorities often showed a particular interest in property investments.
He believed this could change if additional education and information on hedge funds was made available.
But he questioned whether managers were taking advantage of the local authority market.
“I think many managers think it’s too much hard work,” he said.
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