The limitations on UCITS growth
Fri Dec 2, 2011
The onshore wrapper is still subject to constraints and restrictions. DATA INCLUDES: 'Managed futures – top 10 absolute return UCITS funds by annualised rate of return'
The onshore wrapper is still subject to constraints and
For all the demonstrable growth in the market, it is important
to maintain a perspective on the expansion of new or
alternative UCITS over the past three years.
As figures on the comparative size of the offshore market
versus the new UCITS universe clearly demonstrate, the lights
are not going out in the Cayman Islands quite yet. Nor does the
growth of the UCITS movement mean they are likely to be
extinguished any time in the foreseeable future, because there
remain a number of very clear constraints to the expansion of
The first and most obvious of these is that there is a
natural limit on the range of investment strategies that can be
repackaged in UCITS format. The liquidity requirements in the
regulations make a range of strategies, such as those based on
ISSN: 2151-1845 / CDC10004H
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