In the last four years so many panels, surveys, white papers covered this critical topic.
However, we continue to see fund managers launching UCITS vehicles to match investors' regulatory requirements. Recently, the English fund manager Finisterre Capital initiated a strong move by setting up an EU regulated fund after one of its insurance clients threatened to pull out its money from its offshore existing fund.
Those cases show that beyond disappointments on the restrictions imposed when managing UCITS vehicle, beyond the disappointment of the performance, beyond the rational offshore/onshore debate, here comes the fact: UCITS are for the moment, the only acceptable vehicle for many institutional investors in Europe.
According to our data partner Alix Capital, the number of funds is stagnating and the assets are growing. As Louis Zanolin explained, the assets continue to flow in big traditional brands with distribution networks and capacity. This phenomenon is not new and is reflecting the institutionalisation of the UCITS market. Small funds with assets under $15m close down.
Another critical fact is how the development of UCITS since 2008 has progressively impacted the business models of hedge funds. P. Schoenfeld Asset Management "PSAM" (see last edition) an event driven firm, has seen nearly doubled its UCITS assets year to date. That implies a different cultural mind set in terms of reporting, compliance, liquidity and risk management as well as the impact of the implementation of AIFMD.
I wish you a happy reading and take this opportunity to thank you for your great comments and support!
Sophie van Straelen
About your editor: Sophie van Straelen and Asterias Ltd: Sophie van Straelen started her professional career in investment banking spanning derivative markets and hedge funds. Her 12 year experience in investment banking provided a strong base to found Asterias Ltd, the consultancy located in London, specialised in delivering strategic insight in distribution for service providers and hedge fund managers. Listed in 2009 by EFinancial News as one of the top 100 most influential women in finance in Europe, she is a recognized, valuable and independent source of analysis for the media, lobbying groups and investors.