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From Sagar Chakraverty, Opalesque Asia:

A new survey from Ernst & Young (E&Y), one of the largest global auditing firms, reveals that new directive on Undertaking for Collective Investment in Transferable Securities IV (UCITS IV) has a lower cost reduction opportunity than initially expected by many European investment fund asset managers. So hedge fund managers, who are trying to move into products regulated by European retail investments, may find this move to be more costly than initially expected. However, like every cloud has a silver lining, asset managers can still gain from business model alignment, the E&Y survey showed.

The E&Y poll covered a sample size of 98 European investment fund participants. Of this, 49%, considered that business model alignment with UCITS IV is the biggest driver for improving their operating model. On the other side, 37% judged that cost efficiency of UCIT IV is the biggest driver for improving their operating model.

Crispin Rolt, Ernst & Young’s UCITS IV leader said: “Operational efficiency is a key feature of UCITS IV, and it will bring benefits to managers through a more scalable fund range.

“Changes under the Directive will improve distribution opportunities, bringing speedier entry into new markets and that should be the leading driver for managers distributing products cross bord......................

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