Sat, May 23, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Preqin’s research shows UCITS hedge funds offer liquidity and transparency at the expense of returns

Thursday, March 28, 2013

Beverly Chandler, Opalesque London: Latest research from Preqin into UCITS compliant hedge funds asks what is their appeal to investors? Hedge fund compliant UCITS have been permitted since 2001. Prior to that, the legislation, originally passed in 1985, was targeted at creating a Europe-wide common set of regulations for long only mutual funds or unit trusts.

It was the third outing of the directive that widened the use of financial instruments permitted under the regulations, allowing fund managers to hedge their holdings. Preqin writes that since this time, the use of UCITS as a wrapper for hedge fund strategies has grown rapidly. "In 2002 seven hedge funds were launched which complied with UCITS regulations; now Preqin Hedge Fund Analyst tracks over 550 active UCITS vehicles."

One of the great appeals of alternative UCITS funds is that they offer investors increased liquidity, with the median redemption frequency of a UCITS vehicle being one day with a notice period of two days. Following the financial crisis in 2008, investors saw UCITS-compliant funds as vehicles that could satisfy their liquidity needs in an uncertain market.

There is also a greater degree of transparency in UCITS funds, which, Preqin writes, are attractive features to investors in the post-Madoff era. "In 2009 the proportion of fund launches represented by UCITS funds almost doubled to 13%, and in 2010 this increased even further to 17% of al......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner