A survey by London-based KDK Asset Management has found that the vast majority of FoHF managers are heading down the Ucits road, despite their poor performance this year (-0.83 per cent YTD). A total of 47 managers representing a combined AuM of more than USD300 billion participated, 80 per cent of whom said they’ve either already rolled out a Ucits-compliant fund or plan to do so over the coming months. Of those running newcits, two thirds currently follow a multi-strategy approach. The survey showed that 70 per cent of managers plan to launch a Ucits fund within the next two years, with FoUHFs by far the most popular investment structure (65 per cent). Somewhat surprisingly, when asked about preferred domiciliation, only 5 per cent selected Ireland, making Luxembourg (75 per cent) the overwhelming choice. In light of FoUHFs’ weak market performance, 42 per cent of those considering the wrapper said lack of demand would likely be the main show-stopper. According to Eurekahedge, despite only representing 7 per cent of the hedge fund industry’s USD1.5 trillion, they’ve managed to attract 20 per cent of net inflows YTD. The meteoric rise in newcits looks set to continue.