Ucits gaining from AIFMD uncertainty

Author: Gemma Varriale | Published: 25 May 2011

Impatience with the AIFMD continues to drive hedge-fund managers to invest in Ucits.

"AIFMD is not clear enough," said Laurent Fessman, a Luxembourg-based partner at Baker McKenzie. "Hedge fund managers don’t want to wait until there is more clarity on the AIFMD when they can use Ucits to replicate what they would have done."

Interest in the evolution of Ucits is understandably high in Luxembourg, which accounts for 30% of the collective investment market, with net assets under management totalling €2,198bn.

The European Fund and Asset Management Association (EFAMA) published a report on May 16, covering the investment strategies of Ucits, specifically the so-called "Newcits" phenomenon.

EFAMA concluded that the Ucits legislation provides a robust framework with...