Harnessing the convergence between traditional and alternative investments
Mon Dec 5, 2011
The revival of SEC fund registration is slow but remains popular with big banks and large FoHF brands wanting to deepen distribution and go retail
By Niki Natarajan
The growth of
funds of hedge funds registered with the SEC under the 1940 Act
in the US has been very slow in taking off, and the much
anticipated revival is only now starting to gather a modicum of
momentum. Despite this, there are a number of reasons why the
time for a regulated and transparent wrapper is finally coming.
Perhaps the most important one is the convergence of
alternative and traditional investments, and the registered
investment company in the US and the UCITS structures in Europe
are allowing this to happen.
For this reason, the players are likely to be the bigger
asset managers and banks all looking to raise assets and
capitalise on traditional mutual fund distribution
On the single-manager side, the transition into what are
called 'alternative' mutual funds has already started.
According to SEI's 2009 white paper called "Exotic to
ISSN: 2151-1845 / CDC10004H
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