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Asian UCITS: A gold rush with challenges?

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So-called Newcits funds have been a boon for Europe, but a bane for Asia, according to research by BNP Paribas Securities Services.

Distribution of UCITS in Asia, a 74-page report published BNP and specialist investment consultant Knadel, states that regulators in Asia are increasingly suspicious of the expanded remit in instruments and strategy allowed for UCITS.

The regulatory approach has generally tightened in Asia following the global financial crisis and Lehman mini-bonds issue – and concerns have been expressed in some quarters regarding whether UCITS can do too much and whether they will become a back door for hedge funds,