The Alternative Investment Fund Managers Directive creates a unified standard for alternative investment funds.
The statistical data highlights that most of the money going into UCITS-compliant funds is institutional money, according to Claude Niedner, a partner from law firm Arendt & Medernach.
Niedner asked a panel at the Association of the Luxembourg Fund Industry conference last week about why institutional investors are going into such highly regulated products.
Investors prefer regulated products because the downside is limited compared to a non-regulated product, according to Thomas van Ditzhuyzen, head of private labelling in Europe for Swiss and Global Asset Management.
He told the audience: “If a non-regulated product busts, the question comes up [about] whose fault is it and could it have been prevented? If you are...