Investor Beliefs

Recent discussions with instituitional and retail investors revealed the following beliefs in regard to UCITS funds.

A quarter of UCITS III allocations do not sit within the HF portfolio.  This means that many investors look to add both hedge funds and UCITS vehicles to their portfolios, potentially adding to the level of alternative investments and strategies. 

In order of preference, the greatest reason for investing

1. Enhanced Liquidity (eg. daily, weekly or fortnightly)
   
2. Regulatory Framework
   
3. Regulated Risk Management
   
4. Lack of provision for gates & lock ups; presence of custodian Bank & restriction of leverage In general there was NO preference to which strategy people are investing in for UCITS III funds
   

Over 90% of respondents perceived return objectives to be slightly reduced form HF returns

Vast majority of respondents had NO preference to either platform based or stand alone UCITS III vehicles Almost all respondents stated that there has been a willingness from HF Managers to explore the potential for UCITS III vehicles

Over 90% of respondents perceived UCITS III vehicles to be for both Retail and Institutional Investors