Phil Moore, special reports writer, HedgeFund Intelligence
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."...