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 restrictions

Jeff Weber 
York Capital
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 UCITS.

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 distressed...

ISSN: 2151-1845 / CDC10004H

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