Politics & Regulation

Retail driving convergence between long-only and hedge funds, report says


Retail orientated absolute return funds, like alternative UCITS, are driving traditional funds to incorporate hedge fund characteristics, according to software company Multifonds. 

Retail investors looking for absolute returns, institutional investors increasing allocations to hedge funds and new regulatory requirements like the AIFMD, were the main catalysts for convergence, according to the report, Convergence and the impact of AIFMD (Alternative Investment Fund Managers Directive).

Keith Hale Multifonds UCITSThe survey showed that 43% believed that all three were significant catalysts for convergence and 35% felt that regulatory requirements such as AIFMD were the most significant.