Fund derivatives business in Europe, including Dresdner Kleinwort Wasserstein, Société Générale and Deutsche Bank, are beginning to go after the USD6 trillion pension fund market in the U.S. as a potential source of investment. Mehraj Mattoo, managing director and global head of alternative investments in London, said U.S. pension funds have begun to show interest in investing in hedge funds through structured products that provide some capital protection.
Dresdner already markets these products to high-net-worth and family offices in the U.S., but it is actively chasing after the pension business as it is an emerging, and potentially large market. Mattoo added that the structuring group, which is based in London, has also been working in partnership with U.S. distributors.
Jean-Marie Barreau, head of structured derivatives on managed assets at Deutsche Bank in London, said it is focusing on middle market funds with under USD2 billion under management. The largest hurdle is to find the right channel of distribution.
