Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin survey: 43% of institutional investors in hedge funds are investing in or considering UCITS funds in 2010

Thursday, March 11, 2010
Opalesque Industry Update –UCITS III is attracting growing numbers of hedge fund managers and investors according to Preqin’s survey results

In February 2010 Preqin carried out a survey of 50 institutional investors to determine the current demand for UCITS-compliant hedge funds. Preqin also surveyed 60 fund of funds mangers to ascertain the present supply of UCITS funds in the hedge fund industry. Key findings of the survey include:

Investor Survey:
• 8% of all institutional investors surveyed allocate capital to UCITS funds, and all are European-based.

• 35% of institutional investors, including investors based outside Europe, are considering adding a UCITS vehicle to their hedge fund portfolio in 2010.

• Four factors were most frequently listed by investors as the value added of UCITS: transparency (41%), regulatory oversight (22%), liquidity (22%), and a strong risk management framework (11%).

Fund of Funds Manager Survey:
• 28% of managers surveyed are currently running a UCITS platform, and a further 28% are presently adopting UCITS style in their hedge fund portfolio.

• 51% of European-based managers currently offer UCITS products, constituting the largest source of UCITS funds.

• Presently, 11% of managers from ROW run UCITS funds and we predict investor appetite for UCITS products to increase outside Europe, in places such as Asia, Latin America and the Middle East.

• Better liquidity terms (27%), investor demand (26%), regulatory compliance (21%), and benefits of the EU passport (6%) were the biggest incentives for managers to set up a UCITS structure.

• Larger managers are more likely to offer UCITS, with 59% of managers with assets under management in excess of $1 billion currently running a UCITS platform. Going forward, we expect further increases in large and established hedge fund managers which offer UCITS-compliant products.

“UCITS has become increasingly popular with investors, with 8% of investors surveyed currently allocating capital to UCITS compliant hedge funds and a further 35% of institutional investors considering making their maiden investment in 2010. The UCITS trend has been the strongest in Europe, however, features such as transparency, liquidity and backing by solid regulation are attracting investors worldwide to UCITS vehicles; we predict the UCITS universe will continue to expand particularly as investors remain cautious and calls for increased regulation of the industry continue. Growing numbers of managers, predominantly the larger and more established managers, are accommodating investor demands by offering UCITS products. UCITS offers solutions to mitigating risks, but it also has some drawbacks such as higher structural costs and investment restrictions,” said Nicole Rubbi-Clarke, editor of the report.

Full report available at: www.preqin.com/UCITSreport


Preqin is the leading source of information for the alternative assets industry, providing data and analysis via online databases, publications and bespoke data requests. With offices in London and New York, Preqin has built a reputation in the alternative assets industry for providing the most comprehensive and extensive information possible. www.preqin.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t