The role of hedge funds in pension fund portfolios must take into account socially responsible investment, said Wouter Pelser, Chief Investment Officer of MN Services.
Speaking to GlobalCustodian.com at a hedge fund conference in Dubai, Pelser stressed the need for hedge funds to meet the demands of their investors.
“Hedge Funds are increasingly in the limelight and their behavior will be watched. Demand should move towards ethics and transparency, and it is more important to invest in good managers rather than the fee structure,” said Pelser. “It is not the pension fund that is investing, but the pension fund member. Ethics are therefore vital, otherwise pension funds will not invest in hedge funds.”
MN Services, the pension administration, management support and investment management group is owned by Dutch metal workers pension funds PME and PMT, and manages around EUR56 billion (December 2008).