London, UK — MFA issued the following statement in response to the Bank of England (BoE) Governor Andrew Bailey’s speech today in London.
“Monitoring for risk in the financial system is important. Market-based finance is essential for economic growth, providing diverse sources of capital, improving market efficiency, and supporting businesses and investors, including pensions. The structure of hedge funds enhances financial stability, as hedge funds have no government backstop, no liquidity mismatch, and losses are siloed to an individual fund and its sophisticated investors. Regulators have visibility into the activity of hedge funds through existing regulatory reporting and the funds’ broker-dealer counterparties. Through these channels regulators can monitor for risks to the financial system.” — Jillien Flores, MFA Head of Global Government Affairs
About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
