GLOBAL - Pension schemes fearing hedge fund fraud could be protected by an insurance product launched today by Protean Investment risks.
Nathan Sewell, managing director, Protean Investment Risks, told Global Pensions: "When assessing a fund for cover, we are focusing on fraud potential, not investment risk.
"This massive industry was, until now, largely unprotected against the misrepresentation of fund values which concerned investors more than theft of assets."
As it attracts more clients, Protean will develop a database of the funds covered by its policy, but Sewell pointed out the company would not investigate individual hedge funds.
Sewell explained how much the policy would cost a pension fund: "Based on the portfolio value, the insurance would cost in the low tens of basis points. If the pension fund was well diversified, this would of course be advantageous for their premium levels."
The product will be available to pension funds of any size based in any country, subject to licensing approval.
Hyperbolic discounting and political temptation: Why Brexit-fuelled AE reversal would be a 'monumental' mistake
The home secretary has suggested AE should be scrapped in the event of a no-deal Brexit. Darren Philp explains why this would be misguided
The trustees of the Kodak Pension Plan No.2 (KPP2) have said it will likely enter the Pension Protection Fund (PPF) in "due course" after reviewing the scheme's investment in Kodak Alaris.
A US company has completed a £285m pensioner bulk annuity for around 1,100 of UK members with Legal & General (L&G).
Former BHS chief Dominic Chappell has been accused of trying to rewrite history as he seeks to overturn a conviction for failing to hand over information to the regulator.