Wrappers / Structures

Nearly 70% fear that UCITS may distort strategies and diminish returns, says EDHEC survey


As part of the CACEIS research chair on non-financial risks in investment funds, EDHEC-Risk Institute has surveyed 437 respondents with more than €13 trillion under management, made up of UCITS and alternative asset managers, their service providers, external observers, and investors.

One primary fear is that many strategies would need to be altered to earn the UCITS label, and liquidity requirements would put the liquidity risk premium out of reach.

Of those surveyed, 69% of participants think that the “liquidity premium of hedge fund strategies will disappear and that performance will fall” when hedge fund strategies are structured