Wed, Sep 24, 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   |   
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. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will

  3. 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

  4. 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

  5. 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