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Alternative Market Briefing

The pros and cons of alternative investments in Ucits debated at the Frankfurt Round Table

Friday, July 01, 2011

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Claudia Roering
By Beverly Chandler, Opalesque London:

Speaking at the inaugural Opalesque Round Table in Frankfurt, sponsored by Eurex and Custom House Group, Claudia Roering, head of fund and manager selection at Deutsche Asset Management, volunteered that their client base mostly uses Ucits for alternative investments. "Alternatives are still niche here" she said. "The client with the highest exposure to alternatives is currently running an alternative bucket of 20% in his overall global pension related mandate, but usually the allocation to alternatives would not exceed 5% ." Within that group, investors are mostly in German Spezialfonds or similarly regulated international formats, predominantly Ucits compliant vehicles. Dr Dieter Kaiser, director of investment management with Feri Institutional Advisors said: "From the 14 billion we run, roughly 1 billion is in long/short strategies that are roughly equally split among offshore structures and UCITS products. We mainly see many new entrants into the long/short space via the launch of UCITS products, and also more investors start using UCITS and integrating long/short strategies to their portfolios."

Kaiser commented that German investors in alternatives who had started with offshore structures tended to stick with them, which means UCITS in Germany are basically attracting a whole new client group. "We also have demand on the consultancy side around investing in traditional offshore multi-strate......................

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