Sat, Dec 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications

Roundtable: Over 50% of German institutions to put more money into alternatives, offshore funds still attractive

Sign up here for our free Roundtable Scripts - get this unique intelligence by email as Opalesque publishes them:

The growth of alternatives in Germany is accelerating at the moment due to the absence of yield in the typically lower risk assets. While regulated investors’ demand for UCITS is unabated, unregulated investors like corporates, family offices, etc. have found a renewed interest for offshore hedge funds - and funds of funds.

In a recent survey, more than 50% of the institutional German investors said that in 2014 they would put more money into alternative investments. A majority also said they would still would go for infrastructure and other alternative investment classes, even if they could have a 4% interest rate on government bonds. However with regards to solvency, people tend to hesitate making illiquid, long-term investments because it's not clear how these investments are treated regarding the institution's equity requirements.

Family offices in Germany especially like the asymmetric risk-return profile of hedge funds compared to equities and their ability to preserve capital in severe market environments. Some high net-worth individuals who sold their allocation into alternatives after the 2008 experience are now starting to be interested again.

AIFs versus UCITS funds: UCITS have unbeatable selling point

Over the next two or three years, the AIF brand will get more established, and investors may increasingly use alternative investment funds (AIFs) while at the same time the UCITS framework may become more restricted for alternative investments. However, UCITS have an unbeatable selling point: they are not classified as a hedge funds. As long as an alternative investment fund is classified as a hedge fund, then institutional investors have to hold it in the hedge fund or alternatives bucket, which is typically very restricted. Therefore, for regulated investors the discussion “do UCITS perform like offshore funds?” is irrelevant as many simply don't have other choices to get absolute return exposure: it is either UCITS or nothing.

But in the future, AIFs may be a good “middle ground” between the UCITS world where the funds are highly regulated, which may be a good format for less informed investors, and the unregulated offshore world. Over time also non-European managers will become more interested in either getting the AIFM license on their own, or in using platform type solutions offered by European licensed manager.

One year of AIFMD - a reason to celebrate? Who benefits, who does not? Why “reverse solicitation” isn’t the answer…

While AIFs may become more established, challenges still loom on the taxation side. Many funds and German investors are not 100% sure about the impact of the new regulatory environment, especially on their after tax returns, and around the marketing of alternative investment funds.

Clear guidance exists with regard to the German “Spezialfonds”: these are tailored for only one investor, and the discussion on setting up such a fund between a fund manager and the investor of such Spezialfonds is not regarded as marketing. If however you want to address the opportunities to unknown investors in Germany, marketing might be a tricky issue in the future.

This Roundtable, sponsored by Eurex and tax and legal consultant WTS, took place in Frankfurt on May 27th, 2014 at the office of WTS with:

  1. Vassiliki Veliou, Eurex
  2. Robert Welzel & Steffen Gnutzmann, WTS
  3. Frank Dornseifer, BAI
  4. Valentin Bohländer, HQ Trust
  5. Frank Umlauf, Tajdo
  6. Dr. Werner Goricki, Prime Capital
  7. Ahmet Peker, Deka Investment
This Roundtable also discussed:
  • What alternative strategies are attractive for German investors now?
  • Why has investor interest for Buxl, Eurex’ 30-year instrument, gone through the roof?
  • How is the industry moving from OTC towards a standardized world?
  • What could the next financial crisis look like? How to prepare? How should risk management adapt?
Enjoy!

Access the Opalesque Roundtable Series - Frankfurt 2014 | Download here

The Opalesque Roundtable Series offers unparalleled intelligence on the most important global hedge fund jurisdictions and their players. The Roundtable Series is a free publication from Opalesque and is continually updated. Please scroll down to view the full selection of our Roundtables - covering the globe!

Article Link

Other Opalesque Roundtables in Frankfurt
Tue, 16 Jul 2013
Opalesque Roundtable Series - Frankfurt 2013 More informationDownload
Thu, 05 Jul 2012
Opalesque Roundtable Series - Frankfurt 2012 More informationDownload
Wed, 29 Jun 2011
Opalesque Roundtable Series - Frankfurt 2011 More informationDownload
Opalesque Roundtable Series - A Catalogue of Intelligence on Global Hedge Fund Centers:
Wed, 10 Dec 2014
Opalesque Roundtable Series - Hong Kong 2014 More informationDownload
Mon, 01 Dec 2014
Opalesque Roundtable Series - Singapore 2014 More informationDownload
Thu, 20 Nov 2014
Opalesque Roundtable Series - Gulf (Dubai) 2014 More informationDownload
Tue, 04 Nov 2014
Opalesque Roundtable Series - Gibraltar More informationDownload
Tue, 28 Oct 2014
Opalesque Roundtable Series - Russia 2014 More informationDownload
Mon, 20 Oct 2014
Opalesque Roundtable Series - Luxembourg More informationDownload
Wed, 08 Oct 2014
Opalesque Roundtable Series - Netherlands 2014 More informationDownload
Wed, 01 Oct 2014
Opalesque Roundtable Series - U.K. 2014 More informationDownload
Thu, 03 Jul 2014
Opalesque Roundtable Series - France 2014 More informationDownload
Wed, 14 May 2014
Opalesque Roundtable Series - Malta 2014 More informationDownload
Fri, 07 Mar 2014
Opalesque Roundtable Series - Cayman 2014 More informationDownload
Wed, 05 Feb 2014
Opalesque Roundtable Series - Geneva 2014 More informationDownload
Wed, 22 Jan 2014
Opalesque Roundtable Series - Zurich 2014 More informationDownload
Fri, 17 Jan 2014
Opalesque Roundtable Series - South Africa 2014 More informationDownload
Tue, 07 Jan 2014
Opalesque Roundtable Series - Miami 2014
Opalesque Roundtable Series - Miami 2014 (Spanish version)
Opalesque Roundtable Series - Miami 2014 (Portuguese version)
More information
Tue, 17 Dec 2013
Opalesque Roundtable Series - Brazil 2013 More informationDownload
Mon, 09 Dec 2013
Opalesque Roundtable Series - New York 2013 More informationDownload
Mon, 18 Nov 2013
Opalesque 2013 Chicago Roundtable More informationDownload
Thu, 07 Nov 2013
Opalesque 2013 HARD ASSETS Roundtable More informationDownload
Wed, 16 Oct 2013
Opalesque Roundtable Series - Nordic Region 2013 More informationDownload
Mon, 05 Aug 2013
Opalesque Roundtable Series - Connecticut 2013 More informationDownload
Wed, 10 Jul 2013
Opalesque Roundtable Series - France 2013 More informationDownload
Tue, 02 Jul 2013
Opalesque Roundtable Series - Gulf (Abu Dhabi) 2013 More informationDownload
Mon, 24 Jun 2013
Opalesque Roundtable Series - U.K. 2013 More informationDownload
Mon, 17 Jun 2013
Opalesque Roundtable Series - West Coast 2013 More informationDownload
Wed, 12 Jun 2013
Opalesque Roundtable Series - Australia 2013 More informationDownload
Thu, 30 May 2013
Opalesque Roundtable Series - Hong Kong 2013 More informationDownload
Mon, 20 May 2013
Opalesque Roundtable Series - Japan 2013 More informationDownload
Tue, 14 May 2013
Opalesque Roundtable Series - Singapore 2013 More informationDownload
Wed, 13 Mar 2013
Opalesque Roundtable Series - Netherlands 2013 More informationDownload
Mon, 21 Jan 2013
Opalesque Roundtable Series - Florida 2013 More informationDownload
Mon, 14 Jan 2013
Opalesque Roundtable Series - Cayman 2013 More informationDownload
Mon, 17 Dec 2012
Opalesque Roundtable Series - Geneva 2013 More informationDownload
Wed, 05 Dec 2012
Opalesque Roundtable Series - South Africa 2013 More informationDownload
Mon, 26 Nov 2012
Opalesque Roundtable Series - Zurich 2012 More informationDownload
Thu, 01 Nov 2012
Opalesque Roundtable Series - Managed Futures 2012 More informationDownload
Tue, 23 Oct 2012
Opalesque Roundtable Series - New York 2012 More informationDownload
Tue, 16 Oct 2012
Opalesque Roundtable Series - Connecticut 2012 More informationDownload
Tue, 02 Oct 2012
Opalesque Roundtable Series - Canada 2012 More informationDownload
Mon, 24 Sep 2012
Opalesque Roundtable Series - Nordic Region 2012 More informationDownload
Wed, 25 Jul 2012
Opalesque Roundtable Series - U.K. 2012 More informationDownload
Tue, 17 Jul 2012
Opalesque Roundtable Series - Monaco 2012 More informationDownload
Thu, 14 Jun 2012
Opalesque Roundtable Series - Japan 2012 More informationDownload
Thu, 07 Jun 2012
Opalesque Roundtable Series - Hong Kong 2012 More informationDownload
Wed, 30 May 2012
Opalesque Roundtable Series - Singapore 2012 More informationDownload
Wed, 23 May 2012
Opalesque Roundtable Series - Australia 2012 More informationDownload
Thu, 10 May 2012
Opalesque Roundtable Series - Gulf (Abu Dhabi) 2012 More informationDownload
Thu, 03 May 2012
Opalesque Roundtable Series - France 2012 More informationDownload
Wed, 04 Apr 2012
Opalesque Roundtable Series - Brazil 2012 More informationDownload
Thu, 12 Jan 2012
Opalesque Roundtable Series - Geneva 2012 More informationDownload
Wed, 21 Dec 2011
Opalesque Roundtable Series - Pfäffikon 2012 More informationDownload
Fri, 09 Dec 2011
Opalesque Roundtable Series - South Africa 2012 More informationDownload
Thu, 24 Nov 2011
Opalesque Roundtable Series - Netherlands 2011 More informationDownload
Mon, 14 Nov 2011
Opalesque Roundtable Series - Texas 2011 More informationDownload
Mon, 07 Nov 2011
Opalesque Roundtable Series - Boston 2011 More informationDownload
Mon, 31 Oct 2011
Opalesque Roundtable Series - Cayman 2011 More informationDownload
Mon, 24 Oct 2011
Opalesque Roundtable Series - Connecticut 2011 More informationDownload
Thu, 06 Oct 2011
Opalesque Roundtable Series - New York 2011 More informationDownload
Wed, 10 Aug 2011
Opalesque Roundtable Series - France 2011 More informationDownload
Mon, 01 Aug 2011
Opalesque Roundtable Series - U.K. 2011 More informationDownload
Mon, 25 Jul 2011
Opalesque Roundtable Series - Austria 2011 More informationDownload
Thu, 19 May 2011
Opalesque Roundtable Hong Kong 2011 More informationDownload
Mon, 02 May 2011
Opalesque Roundtable Series - Singapore 2011 More informationDownload
Tue, 26 Apr 2011
Opalesque Roundtable Series - Australia 2011 More informationDownload
Sun, 10 Apr 2011
Opalesque Roundtable Series - New Zealand 2011 More informationDownload
Sun, 03 Apr 2011
Opalesque Roundtable Series - West Coast 2011 More informationDownload
Fri, 25 Mar 2011
Opalesque Roundtable Series - Colorado 2011 More informationDownload
Thu, 20 Jan 2011
Opalesque Roundtable Series - Geneva 2010 More informationDownload
Sun, 19 Dec 2010
Opalesque Roundtable Series - Malta 2011 More informationDownload
Tue, 14 Dec 2010
Opalesque Roundtable Series - South Africa 2011 More informationDownload
Fri, 03 Dec 2010
Opalesque Roundtable Series - Connecticut 2010 More informationDownload
Thu, 18 Nov 2010
Opalesque Roundtable Series - New York 2010 More informationDownload
Tue, 09 Nov 2010
Opalesque Roundtable Series - Singapore 2010 More informationDownload
Thu, 04 Nov 2010
Opalesque Roundtable Series - Cayman 2010 More informationDownload
Mon, 25 Oct 2010
Opalesque Roundtable Series - Hong Kong 2010 More informationDownload
Mon, 04 Oct 2010
Opalesque Roundtable Series - Zurich 2010 More informationDownload
Tue, 20 Jul 2010
Opalesque Roundtable Series - U.K. 2010 More informationDownload
Wed, 16 Jun 2010
Opalesque Roundtable Series - Florida More informationDownload
Sun, 06 Jun 2010
Opalesque Roundtable Series - Boston 2010 More informationDownload
Mon, 24 May 2010
Opalesque Roundtable Series - West Coast 2010 More informationDownload
Sat, 08 May 2010
Opalesque Roundtable Series - Texas 2010 More informationDownload
Wed, 28 Apr 2010
Opalesque Roundtable Series - Brazil 2010 More informationDownload
Mon, 29 Mar 2010
Opalesque Roundtable Series - New Zealand 2010 More informationDownload
Thu, 18 Mar 2010
Opalesque Roundtable Series - Australia 2010 More informationDownload
Thu, 04 Mar 2010
Opalesque Roundtable Series - Japan 2010 More informationDownload
Sat, 09 Jan 2010
Opalesque Roundtable Series - South Africa 2010 More informationDownload
Tue, 15 Dec 2009
Opalesque Roundtable Series - France 2009 More informationDownload
Mon, 30 Nov 2009
Opalesque Roundtable Series - Geneva 2009 More informationDownload
Tue, 17 Nov 2009
Opalesque Managed Futures Roundtable - Chicago 2009 More informationDownload
Mon, 09 Nov 2009
Opalesque Roundtable Series - Canada 2009 More informationDownload
Mon, 19 Oct 2009
Opalesque Roundtable Series - Connecticut 2009 More informationDownload
Mon, 05 Oct 2009
Opalesque 2009 - U.K Roundtable 2009 More informationDownload
Fri, 26 Jun 2009
Opalesque Roundtable Series - New York 2009 More informationDownload
Tue, 09 Jun 2009
Opalesque Roundtable Series - Cayman 2009 More informationDownload
Fri, 29 May 2009
Opalesque Roundtable Series - Japan 2009 More informationDownload
Thu, 21 May 2009
Opalesque Roundtable Series - U.S. West Coast 2009 More informationDownload
Wed, 13 May 2009
Opalesque Roundtable Series - Hong Kong 2009 More informationDownload
Fri, 24 Apr 2009
Opalesque Roundtable Series - Singapore 2009 More informationDownload
Thu, 19 Mar 2009
Opalesque Roundtable Series - Zurich 2009 More informationDownload
Fri, 05 Dec 2008
Opalesque Roundtable Series - South Africa 2008 More informationDownload
Mon, 17 Nov 2008
Opalesque Roundtable Series - Brazil 2008 More informationDownload
Fri, 07 Nov 2008
Opalesque Roundtable Series - Russia 2008 More informationDownload
Mon, 20 Oct 2008
Opalesque Roundtable Series - Nordic Region 2008 More informationDownload
Wed, 01 Oct 2008
Opalesque Roundtable Series - Geneva 2008 More informationDownload
Wed, 02 Jul 2008
Opalesque Roundtable Series - London 2008 More informationDownload
Wed, 11 Jun 2008
Opalesque Roundtable Series - New York 2008 More informationDownload
Fri, 23 May 2008
Opalesque Roundtable Series - Japan 2008 More informationDownload
Tue, 20 May 2008
Opalesque Roundtable Series - Hong Kong - Mandarin (Chinese) language More informationDownload
Wed, 30 Apr 2008
Opalesque Roundtable Series - Hong Kong 2008 More informationDownload
Wed, 23 Apr 2008
Opalesque Roundtable Series - Singapore 2008 More informationDownload
Tue, 25 Mar 2008
Opalesque Roundtable Series - Australia 2008 More informationDownload
Mon, 17 Mar 2008
Opalesque Roundtable Series - New Zealand 2008 More informationDownload
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar