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By Beverly Chandler, Opalesque London

Alix Capital, responsible for compiling the Ucits Alternative Index, has conducted a study of the industry based on a survey of 118 participants, 40% of whom were from the fund of fund community; 17% were direct investors; 16% were from the hedge fund community; 15% were 'other’ and 12% were service providers.

Key findings of the survey were:

• 77% of respondents are already invested in UCITS hedge funds, while 32% of them invest exclusively in UCITS hedge funds.
• Long/Short Equity, CTA and Macro are the most popular strategies.
• Investors are wishing for more Event-Driven and Commodity UCITS hedge funds.
• 82% of those already invested in UCITS plan to increase their UCITS allocation in Q3 2011
• A third of respondents believe the UCITS structure is not more expensive than that of offshore.
• Two thirds of investors are concerned investing in UCITS funds via a swap structure

Alix Capital found it of note that investors are happy with both offshore structures and Ucits vehicles. "This observation is quite interesting as it shows that offshore and UCITS are complementary for the majority of hedge funds investors. There are several reasons why investors are using both structures, ranging from regulatory aspects to access to specific (less liquid) strategies. This demonstrates that the majority of investors tend to adopt a best of both world approach in term of legal structure. This......................

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