A survey released by Naisscent Capital, a Swiss FoF manager, has found that the number of alternative Ucits funds available to investors has exceeded 1,000 reported Financial News thi
A survey released by Naisscent Capital, a Swiss FoF manager, has found that the number of alternative Ucits funds available to investors has exceeded 1,000 reported Financial News this week. Some 65 per cent of them have launched since ’08 financial crisis and illustrates how transparency and greater regulation have acted as a real catalyst for growth in this particular fund arena. Luigi Amato, a partner at Naisscent Capital, said that it was the best example of the convergence “between long-only and hedge funds. The two are getting increasingly blurred.” Institutional investors increasingly want to move away from benchmark products and invest in more flexible hedge fund-like mandates. At the same time, offshore hedge fund managers want to tap into the enormous assets on offer from pension funds. Alternative Ucits are an ideal solution, satisfying both their needs.
Amato, who confirmed that the aim of the report was to provide transparency on the market for fund allocators, estimates that total assets are in the region of EUR100billion to EUR120billion. The report found that a record 350 new funds launched last year compared to 160 funds in 2009. This year some 150 funds have launched. Equity l/s remains the most popular strategy – 220 funds at present – followed by fixed income (185 funds) and equity market neutral (70 funds). Over half the funds are domiciled in Luxembourg. Naisscent also confirmed that there are over 100 alternative Ucits FoFs.
