European mutual fund executives told the Committee of European Securities Regulators last week that indexes linked to hedge funds’ performance are becoming more commonplace in the investment management industry and that they should be allowed to invest in derivatives linked to such indexes. Last month, the committee indicated it was considering passing such a measure. So reports the International Herald Tribune.
“It’s an increasingly safe way to access the hedge fund market,” said Caelim Parkes, who is in charge of marketing for Europe, the Middle East and Africa for MSS Capital and runs the FTSE Hedge Index. “The retail market is a hugely untapped area in terms of hedge funds’ assets raising.