Ucits FoHFs shine as growth of sector continues rapidly
Ucits III-compliant hedge funds have continued to thrive throughout the second quarter of 2010, as the sector edges towards 500 funds, according to data provider, the Ucits Alternative Index.
With a true universe of these so called ‘Newcits’ funds now in place, the Ucits compliant funds of hedge funds (FoHFs) picture is also evolving rapidly, as FoHFs businesses look to build diversified portfolios of Ucit managers.
The data shows a sharp increase of both single manager and FoHFs, 19% and 40% respectively, with AuM in the second quarter rising by E13 billion ($17bn) for single manager funds and E 0.8 billion ($1bn) for funds of hedge funds. An upswing of 19% and 50% in percentage terms.
At the end of Q1 2010 Luxemburg and Ireland were the domiciles of respectively 33% and 27% of all Ucits funds of hedge funds. Given that almost all new funds of hedge funds launched in Q2 are domiciled in Luxemburg, the Grand Duchy now represents 50% of this market.