
Singapore reconsiders hedge fund rules
“The new proposals are very much in line with the guidelines in Hong Kong,” said Bo Kratz, chief executive of ABN Asset Management, based in Singapore. “Not surprisingly, it means the MAS has been keeping an eye on Hong Kong, and it now opens hedge fund investments up to a broader range of investors.”
The proposed guidelines differentiate between single hedge funds, a fund of hedge funds and capital protected or capital guaranteed hedge funds. Like the Hong Kong regulations, Singapore’s retail investors will be able to invest in hedge funds with a 100% capital guarantee with no minimum investment requirements.
For a fund of hedge funds, a minimum investment of S$20,000 ($11,435) is required, with an additional stipulation that managers should invest in at least 15 funds to ensure diversity. In Hong Kong, the minimum investment for fund of hedge funds is $10,000, and managers must invest in a minimum of five funds.
Investors looking to invest in a single hedge fund, however, must be prepared to invest S$100,000 ($57,177), again similar to the Hong Kong minimum investment of $50,000. The original Singapore regulations issued last June had originally stipulated a minimum investment of S$100,000 for all types of retail hedge fund.
“It’s an improvement because they’ve lowered the minimum investment from a very high S$100,000, but they’ve also distinguished between a fund of hedge funds and a single strategy hedge fund, which is good because they have completely different risk profiles,” added Kratz.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Structured products
Risk management
Union beckons for the three quant tribes
Studies may be deferred, but future for grads is bright, argues UBS’s Gordon Lee
Receive this by email