Traditional long-only asset managers are launching more UCITS hedge fund products, according to Isabelle Tykoczinski from consultants Kinetic Partners.
Many traditional asset managers are launching UCITS hedge funds or expanding their investment strategies to include products that use hedging strategies, according to Tykoczinski, a member within risk management department at London-based Kinetic Partners.
The trend of traditional assets managers moving towards hedge fund UCITS is shown by Standard Life Investments converting its $8.4 billion (£5.22 billion) Global Absolute Return Strategies fund into a UCITS III wrapper last month.
Tykoczinski says: “There are many traditional managers that have or are starting to use alternative strategies. UCITS III funds are considered to be for sophisticated investors. Traditional asset managers