Balancing risk: hedge funds in balanced portfolios

Elmien Wagenaar of THINK.CAPITAL examines the South African investment environment and why hedge funds make sense for long-term investors – given the changing regulatory and investing landscape.

Collective Investment Schemes

Draft papers from working groups involving South African financial services regulators and industry indicate that hedge funds will very soon be recognised as Collective Investment Schemes (also called unit trusts). What this means in practice is that the age-old distinction between traditional (cash, bonds and equities) and alternative (hedge fund) assets will no longer exist. It is government’s stamp of approval that due care has been taken to protect investments made by the public into these investment vehicles and that tax will be uniformly treated. Read more