Sun, Feb 1, 2015
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   |   
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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would