INTERNATIONAL: UCITS Global Fund Distribution Survey

Monday September 8 2008

An Extensive study on the evolution of UCITS funds and the impact on the global fund management industry has been conducted by CREATE- Research.

The survey entitled ‘Global Fund Distribution: Bridging New Frontiers’ includes feedback from senior executives at more than 100 leading fund management companies from around the world. The survey finds that UCITS as a European Regulatory Initiative has helped reshape the dynamics of the funds business by evolving into a globally passport fund structure hence, enabling fund managers in Europe to achieve rapid product development, larger client bases and operating leverage in a cost effective manner.

On the other hand , the survey revealed that almost 33% of fund management firms feel that regulatory restrictions on the use of shorting, leverage and derivatives are ‘onerous’ and constrain growth.

The survey has also indicated the global fund management industry’s eagerness to welcome the next generation of UCITS-UCITS IV due to come around in 2011.

CREATE-Research chief executive and author of the report Prof. Amin Rajan said:

“While the current market environment is constraining short-term growth of UCITS funds, survey respondents express confidence in its future. Key to the ongoing success of this phenomenon is the arrival of the next generation of UCITS IV structures—expected in 2011.”

The full report can be found at the above link.