UCITS III Structures
UCITS Hedge Fund Structure | A Growing Trend
Overseas hedge funds are increasingly launching UCITS III structures, which are highly regulated products suitable for institutional and retail investors.
According to some estimates, UCITS III funds currently hold US$6.4 trillion, and sales in Europe, South America and Asia are booming.
In Asia, 70-80% of all funds sold publicly are through UCITS funds.
Philippe Lespinard, a partner at Brevan Howard Asset Management, attributes the proliferation of UCITS structures to the increasing popularity of long extension strategies such as 130/30 funds, the increasing popularity of absolute return strategies such as hedge funds, and the demand for greater transparency in fund management from investors.
John Donohoe, CEO of Carne Global Financial Services, an investment consultancy, says UCITS III funds are a “fantastic long-term opportunity for fund managers to gain access to a broader investor base.”
“We believe that sooner or later, most hedge funds with significant assets under management will adopt UCITS III structures,” he said. Read More...