None of the Global Pensions 100 Panel has secured stakes in hedge funds through the secondary markets, our research shows.
The findings follow claims by secondaries trading platform HedgeBay that a growing number of pension funds are using its platform to trade stakes in hedge funds, and are increasingly appearing as buyers, rather than sellers.
HedgeBay co-founder Elias Tueta told GP that where pensions understood the stake and had confidence in the manager’s strategy, they were willing to buy troubled assets, even where the ‘work-out’ period could last up to five years. He also said pension funds have increased their use of HedgeBay more than ten-fold and now represent some 15% of total activity on the exchange.
At present, pensions comprise the minnow’s share of the activity on secondary markets. However, practitioners say institutional investors overall provide 10% of trade volume on central trading venues such as Hedgebay, compared to just 3% last year.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.