Tue, Feb 20, 2018
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. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Assets - Och-Ziff hedge fund had $7.6 billion in outflows last year, Cracks appear in credit funds as investors head for the exit[more]

    Och-Ziff hedge fund had $7.6 billion in outflows last year From Bloomberg.com: The comeback billionaire Dan Och hoped for during his last year running his hedge fund firm never arrived. Och-Ziff Capital Management Group LLC saw $7.6 billion in client withdrawals last year despite posting