Sun, Jan 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque UCITS intelligence

Assets raising in Europe: Perspectives from a distributor: Gregg Taylor & Anne Simond

Friday, May 16, 2014

The Swiss market for alternative investment funds is highly diverse, some brief comments on appetite in 2014. The demand from pension funds continues to be fragmented, several took a first move back into hedge funds following 2008 by investing solely into macro/managed futures strategies in 2009 and 2010, the negative experience since has dampened enthusiasm for alternatives in general. In addition there are moves to discuss limiting total fees paid across the fund reducing appetite further.

Global corporations whose pension schemes are managed in Switzerland struggle with the challenge of how to convert their defined benefit approach to defined contribution which generally requires access to regulated retail offerings only.

The major private banks who have traditionally had comprehensive alternative offering have seen an increase in demand for single managers as portfolio managers look to reduce fixed income and credit in client portfolios. However certain fund of funds that have met return expectations are seeing some demand. Private banks and wealth managers in general do prefer more liquid and regulated offerings as this increases their target client market.

Family offices continue to be highly diverse in their approach but it should be noted that demand for smaller emerging managers is very limited. In general the new rules governing offering of alternative nonregulated are regarded as pragmatic and far easier for promoters to comply with than the hurdles faced though the implementation of AIFM in Europe.

In order to assist alternative managers wishing to continue to promote their funds, ARM Capital (Swiss) SA are working with Anne Simond to launch ARM Swiss Representatives SA with a focus on offering Swiss representation and distribution services.

REGULATORY KEY POINTS FOR DISTRIBUTING FUNDS IN SWITERLAND

What are the changes that a foreign asset management company should be aware of when distributing or planning to distributing a foreign CIS in Switzerland? As per the circular, the concept of a public offering was replaced by the introduction of the concept of distribution, which is defined as "any offer or advertisement for CIS which is not exclusively addressed to regulated financial intermediaries". According to the Circular, distribution now therefore includes marketing to both qualified and/or nonqualified investors.

While authorization is needed for distribution to nonqualified investors (as it was before), distribution to qualified investors does not require a FINMA authorization. However, it is important to note that the definition of qualified investors has also been replaced by a new definition.

When distributing a foreign fund in Switzerland or planning to distribute a foreign fund in Switzerland, it is now extremely important to ascertain that the target investors meet the qualified investor criteria. As an example non regulated independent asset managers and family offices shall not be considered as qualified investors per se.

One should note also that as per the circular the use of websites is strictly regulated. The main goal is to avoid distribution to non-qualified investors.

Is there specific requirements for distribution to Qualified investors?

Additional change is also the requirement, as of 1 March 2015, to appoint a Swiss legal representative and a paying agent regardless of the type of investors to which the CIS is marketed. This is a new requirement as in the past only CISs registered for public offerings were required to appoint a Swiss representative and a paying agent.



 
This article was published in Opalesque UCITS intelligence.
Opalesque UCITS intelligence
Opalesque UCITS intelligence
Opalesque UCITS intelligence
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 - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised