Phil Moore, special reports writer, HedgeFund
Funds compliant with the third version of the cumbersomely
named Undertakings for Collective Investment in Transferable
Securities (UCITS) are the must-have for 2010. It is easy
enough to see why UCITS III has captured the imagination of
hedge funds and traditional institutional managers alike.
For hedge funds, which saw their assets severely depleted by
the crisis of 2008, UCITS III-compliant products have been
identified as an opportunity to reach out to a new and
diversified base of investors. By replicating their offshore
strategies in an onshore UCITS wrapper, hedge funds are able to
cater to institutional investors' demands for the transparency
and liquidity that went so badly AWOL in 2008.
As a Merrill Lynch update explains: "We think that,
increasingly, investors will look for robust regulation as an
additional safeguard and comfort blanket for hedge fund
investment. UCITS III regulation provides this."...