WEST PALM BEACH, FL (www.hedgeco.net) – The head of the German Hedge Fund Industry Association (BVI) has come to the defense of hedge funds, amidst critics charges that hedge funds flopped inGermany. Alex Benkner, the head of BVI explained that hedge fund products need a long lead time which requires industry to take a longer view in terms of investor demand for such products. Benknersaid, �With respect to larger volumes for hedge funds, we think that the time for this still lies ahead of us,� according to him.
Benkner, who is also the head of Deutsche Bank�s mutual fund arm DWS, made his remarks at the recent BVI�s annual news conference. Benkner spoke about the association�s proposal for a simplified private retirement savings plan; according to him such initiative was gaining support within the current Social Democrat-Green government in Berlin. BVI is also pushing for an approval for Real Estate Investment Trusts (REITs), explaining that a change in Germany�s current investment law was not necessary.
Few years ago, German authorities loosened hedge fund tax reporting requirements. Such development follows recent announcements by regulators that hedge funds have been authorized for retail investors in the country. The new rules were to address numerous complaints from the German hedge fund industry participants who criticized the reporting requirements specified in the retail hedge fund laws.
With such approval, every one expected a big rush by investors to put up their assets into hedge funds. However, it appears that some investors are not yet convinced about investing in hedge fund strategies yet and are taking the go-slow approach. Up to date, very few hedge fund products are available in the markets.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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