Funds Hub

Money managers under the microscope

The use of UCITS

September 21, 2009

Hedge funds are continuing to react to potentially seismic shifts in regulation.

rtr27xy2A number of firms, notably Man Group and Cheyne, are debuting onshore funds that will use the ucits structure — not only widening the potential pool of investors but also sidestepping the EU’s new draft directive on non-ucits funds and the surrounding uncertainty as the draft is debated.

Today Veritas said it is launching a long/short China ucits fund for top fund manager Ezra Sun, targeting an annual return of 15-20 percent.

In its own words, regulation and investors’ access to their cash are the deciding factors when it comes to fund structure.

“We are launching a ucits fund within an environment where greater regulation and liquidity are the strongest drivers.

“This also gives us the opportunity to make the fund accessible to a wider investor base.”

In five years’ time how much of the ‘hedge fund’ industry will be ucits funds?

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