Wed, Jul 23, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro

  5. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm