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Dr Arjun Sittampalam By Beverly Chandler, Opalesque London:
Research Associate and Editor of Investment Management Review at the EDHEC-Risk Institute, Dr Arjun Sittampalam, believes that the reputation of the Ucits vehicle is under possible threat from increasingly global use.
"Ucits have become a highly respected global brand, attracting customers from all over the world in the last few years" he says. "Their reputation is now in danger from two directions: from Asia in the long term and possibly, more immediately, from within Europe itself."
He points out that, currently, the only cross-border vehicles available to Asians are Ucits funds. "It is now felt that a home-grown passport along the lines of Ucits, acceptable across the continent, is to be desired."
The drive for change is, he believes, coming from Australia. "Australian investment managers can now directly access only New Zealand and Hong Kong, under bilateral regulatory agreements. Though they are hopeful of extending this to other Asian countries, they would much rather have a common Asian vehicle accepted throughout the region."
At present, fund managers in Australia have to go through the lengthy and expensive process of establishing an office and Ucits in Europe, and then exporting it back to Asia. "European-based fund managers have an advantage here, in that their existing products with the Ucits label can be marketed to many countries in Asia. As much as 90% of the offshore products sold there originate fro...................... To view our full article Click here
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