2012 Key Trends in UCITS Hedge Funds

April 2012

Introduction UCITS hedge funds have witnessed significant growth since 2007 as managers have continued to attract investment interest from insurance companies, pension funds and other institutional investors. As illustrated in figure 1, assets in UCITS compliant hedge funds have expanded nearly threefold with 912 managers overseeing US$190 billion of capital as at end-February 2012. Figure 1: Industry growth since December 2007
1000 900 800 700 600 500 400 300 200 100 0
Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Feb-12






0 AuM (US$ billion, RHS)

Number of funds (LHS) Source: Eurekahedge

The UCITS III framework, introduced in 2001, laid out various directives that allowed managers to use a wider range of techniques and instruments to help balance the trade off between portfolio risk and return. That framework has since been improved with the UCITS IV directive implemented in the middle of last year. UCITS IV facilitates cross border fund distributions, reduces costs, achieves regulatory alignment, decreases administration burden and achieves economies of scale for the fund management companies. As investors focus more on risk management practices and fund transparency...

The full article is available in The Eurekahedge Report accessible to paying subscribers only. Subscribers may continue to login as usual to download the full report and non-subscribers may email database@eurekahedge.com to enquire on how to obtain the full research report.


April 2012 1


Sign up to vote on this title
UsefulNot useful