Europe has got it wrong on hedge fund capital charge – BlackRock
Capital charge should better reflect real risk of underlying assets, says asset manager, as survey finds insurers are looking to increase exposure to alternative assets
Solvency II's penal treatment of alternative assets, such as hedge funds, is wrong and should properly reflect the real risk of the strategies and assets within the class, according to asset management firm BlackRock.
BlackRock joins others in the industry that have argued against the current risk charges imposed by the Solvency II rules. At present, the draft directive allocates a 49% capital requirement under the standard formula for investment into hedge funds, private equity and other
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