Colonial First State, Australiaâ??s biggest fund manager, suspended redemptions from its mortgage funds on Monday. The decision by the Commonwealth Bank of Australia unit, which had A$3.3 bn in mortgage funds at the end of September, lifts the total frozen by such funds to A$24 bn.
The Financial Services Authority (FSA) said it did not see the need for more regulation of hedge funds, and that most funds had so far weathered recent financial turmoil fairly well.
Calpers, the largest state pension fund in the US, lost 20 per cent of its assets, or close to $40bn, between July 1 and October 20 this year as a result of the turmoil in financial markets.
According to a US regulatory filing, Chinaâ??s sovereign wealth fund, China Investment Corp, is planning to increase its stake in Blackstone Group from 9.9 per cent to 12.5 per cent.