Industry Analysis

AIFMD may hamper UCITS hedge fund growth, say consultants


Hedge fund managers may not launch UCITS hedge funds because of increased clarity from Brussels surrounding the Alternative Investment Fund Managers Directive, according to research from consultants Cerulli Associates.

Some hedge fund managers are having second thoughts about launching so-called Newcits because the AIFMD looks less scary than it once did and the potential for UCITS looks “overblown”, according to Cerulli research.

The uncertainly surrounding how draconian the European directive may be has resulted in hedge fund mangers considering UCITS as an alternative going forward.

The European Parliament approved the AIFMD in November last year which has given the alternative fund industry more clarity and the details of the legislation are being currently being thrashed out.

The Cerulli research also found that investor expectations are straightforward with continental European