Less than a quarter of pension schemes that invest in funds of hedge funds
are satisfied with the returns on their investments, according to a global
Investment Consulting. Just 23% are satisfied with their performance, while
48% are neutral and 28% are dissatisfied.
A survey of more than 180 large pension funds around the world found that
less than half (47%) are satisfied with the performance of their hedge funds
manager. Part of the reason for this could be that just 58% of respondents
understand the investment approach they take.
“The lack of satisfaction expressed by investors is likely to be due to a
mixture of high expectations and fund managers not explaining their strategies
clearly enough,” says Divyesh Hindocha, global head of investment consulting
policy at Mercer. “Investors want a better understanding of a fund’s strategy
and operations, but many investment managers are reluctant to disclose full
details,” he says.