Are alternative UCITS suitable for retail investors?

Wed Mar 23, 2011




This was one of the questions posed to the alternative UCITS panel at the Association of the Luxembourg Fund Industry spring conference.

Markets in Financial Instruments Directive II legislation, currently being discussed by regulators, may result in alternative UCITS funds being divided into complex and non-complex categories.


Eric Personne from Merrill Lynch Investment Services

Alex McKenna, head of fund structuring for London-based Deutsche Bank, told the audience that alternative UCITS are suitable for retail investors.

He added: “Retail investors need to understand what they are buying. If you look at the retail market when looking at the appropriateness for an alternative UCITS it is going to be appropriate for the more sophisticated end of the retail market – investors able to receive investment advice – which will allow them to make a decision based on their circumstances.

“For me this is about the risk of mis-selling and as providers of...

ISSN: 2151-1845 / CDC10004H

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