Wed, Jan 17, 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: COUNTRY FOCUS SWITZERLAND

Friday, May 16, 2014

Impact of the new regulation

Let's explore with Hugo Fund Services, the new representative activity set up by Yves Hervieu-Causse, the impact of the new regulation for managers.

Anne-Cathrine Frogg Spadola

Can you give us an update on the current state of the Swiss market for distribution?

The strong 2010-2012 trend supporting allocations to passive, benchmarked products has decelerated with new highs reached in equity and fixed income indices between 2012 and 2103. Today valuations are stretched in many sub-asset classes and sectors and investors are thinking twice before piling-on additional long only benchmarked assets. Slowly and cautiously, as 2008 is not forgotten, the current situation is creating conditions for re-considering active management and hedge funds. As of mid-2013, we have seen new hedge fund allocation mandates given to Swiss institutional allocators, something not seen since 2008. We believe that this may well be the sign of renewed interest for an investment style that had been deserted for quite a while. However, for the pure hedge fund demand, all depends in the long term on investors' acceptance of the 2/20 fee structure and restrictive liquidity terms.

Could you describe the main changes that impact fund distribution in Switzerland under the new Swiss distribution regime?

As of March 2013, distribution is now regulated and clearly defined. The main change is that non-Swiss funds can only be distributed to qualified investors through the appointment of a representative and paying agent. Non Swiss managers can therefore avoid the process of registering their funds with FINMA and be more flexible in the vehicle sold to investors. The Swiss regulators have chosen to regulate distributors rather than funds. For funds that were already distributed in Switzerland before September 2013, the transitory period ends in February 2015.

What are the positive elements of the new regulation and can you describe briefly the role of the representatives?

A very positive element, particularly for the alternative industry, is the lack of restrictions on the type of fund that can be distributed to qualified investors in Switzerland. The regulator has taken into consideration the Swiss professional, qualified investor environment and understood the need to maintain the current choice of vehicles. However, distribution of these products is clearly more monitored and regulated. The Swiss representative will serve as a link between the regulator, investors and FINMA, but also as an entity ensuring that distribution of non-Swiss funds is organised to comply with local rules.

Do you think the regulatory change will discourage alternative funds from coming to Switzerland?

We think this should not happen. Investors and fund managers will realize that the new regulation is open to all types of funds and also provides a clear legal framework and legal certainty for distribution to Swiss qualified investors. Switzerland will offer an open space of distribution for diversified types of funds to be selected for their added value rather than their structure or domicile.

Based in Geneva, Hugo Fund Services provides representative services for foreign funds marketing in Switzerland to qualified investors.

Hugo Fund Services focuses on hedge funds and private equity funds and is authorised and regulated by FINMA.

Yves Hervieu-Causse, Anne-Cathrine Frogg Spadola Hugo Fund Services, Geneva, Switzerland www.hugofunds.ch



 
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. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager