Pension schemes are increasingly demanding that funds of hedge funds be located onshore as they are unable to invest in traditional unregulated products, managers have found.

GLOBAL - Pension schemes are increasingly demanding that funds of hedge funds be located onshore as they are unable to invest in traditional unregulated products, managers have found.

US - Derivatives that pensions can use to dampen the long-term volatility of their US equities holdings have hit extremely high levels recently, after US legislation caused extreme supply/demand imbalances.

GLOBAL - Global pension funds are increasingly requesting customised fixed income performance benchmarks that exclude exposure to asset classes, market sectors and countries that breach macro-economic indicators.

EUROPE - Gartmore has joined the trend of hedge funds launching onshore portfolios for EU-based pensions, which face exclusion from offshore products under proposed EU regulation of the alternatives industry.

GLOBAL - PIMCO has warned the global economy faces the threat of rising inflation, driven partly by central banks using it as a solution to fiscal deficits.

GLOBAL - The correlation between hedge funds and share markets has returned to highs not seen since before the financial crisis, causing potential concern for investors seeking diversification.

The EU is facing criticism from asset managers over its plans to raise its part of the €750bn (US$922bn) rescue package for embattled eurozone nations.

EUROPE - The EU is facing criticism from asset managers over its plans to raise its part of the €750bn (US$922bn) rescue package for embattled eurozone nations.

Only one in every 60 proposals by hedge funds to institutional investors results in investment, research has found.