Fri, May 6, 2016
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 - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n

  2. Opalesque Exclusive: Hedge fund talent, fees take a hit at the Milken Global Conference[more]

    Bailey McCann, Opalesque New York: It's been a rough year for hedge funds and now, even other managers are panning them. "Frankly, I’m blown away by the lack of talent," was Point 72 CEO Steven Cohen's assessment of trying to find candidates to hire in the investment business at a panel o

  3. Hedge funds fell in April as alternative UCITS surge in Europe[more]

    Komfie Manalo, Opalesque Asia: Hedge funds shed more in April with the Lyxor Hedge Fund Index down 0.9% during the month (-2.8% YTD), but there was some good news with alternative UCITS showing strong inflows in Europe. In its Weekly Briefing, Lyxo

  4. Global hedge funds recover in April on resurging energy commodities[more]

    Komfie Manalo, Opalesque Asia: Global hedge funds recovered in April with the HFRX Global Hedge Fund Index gaining +0.41% last month (-1.47% YTD), while the HFRX Market Directional Index gained +5.31% during the same

  5. AIG lost $349m in hedge fund portfolio in Q1[more]

    Komfie Manalo, Opalesque Asia: Large US insurance group AIG lost a net $183m for the first quarter 2016, year-on-year. The group blames the loss on the impact of market volatility on investments, as well as net realised capital losses and restructuring costs. Its hedge fund portfolio made a n