Sat, Sep 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fund of funds face new challenges from investors

Thursday, February 06, 2014

Bailey McCann, Opalesque New York:

Fund of funds in the US and Europe have been dealing with headwinds ever since 2008. As regulation and investor's preference for direct investing has evolved the fee structure and access offered by the fund of funds model makes less sense to savvy institutions. Delegates at the recent Opalesque Geneva Roundtable noted that fund of funds in America are getting bigger mandates, at least in part because of their willingness to carve out niche expertise.

"In the fund of funds industry, the core business relies upon the selection of the most talented hedge fund managers. We all know that. But what the industry players have been figuring out over the last couple of years is that it is no longer enough from an investor standpoint. Fund of funds managers now need to go beyond that, for instance by convincing a manager to evolve under a UCITS format or by being responsible vis-à-vis the fee structure. On this last point, I must stress that I believe that the 2 and 20 structure, especially in Europe, is no longer acceptable," explains Arié Assayag, Global CEO of UBP Alternative Investments.

This focus on fees in Europe may be putting investors at a disadvantage over their American counterparts. "The industry is facing this significant demand from mostly U.S. pension funds or endowments that are going direct. Those institutions basically seem not to care s......................

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali