Partly as a way to satisfy investor demand for transparent, liquid products and to reach new sources of assets, many hedge fund managers began using Ucits-compliant wrappers for their strategies.

Overview
Ucits wrappers for hedge funds have become a popular way for managers to access new investor sources as well as market and distribute funds more easily within the European Union.

Domiciles
Luxembourg and Ireland are the main locations for the domicile of Ucits hedge funds. While the Irish fund industry is known more for expertise in traditional hedge funds, it is gaining in prominence.

What they say about Ucits
Managers, investors and platform providers all believe it is essential to do deep due diligence on Ucits hedge funds as well as to pay particular attention to strategy and manager selection when investing.

Performance
Hedge fund experience counts when choosing a manager for a Ucits products, concludes a study by Lyxor Managed Account Platform (MAP) Research. Regulation, too, negatively impacts returns, says the study.

Ucits statistics
Ucits assets under management, Ucits by geographical location, liquidity of fund, fund investment styles, location of fund advisor and other data.

Sponsored content: Debate about hedge funds' use of Ucits continues
Hedge funds are continuing to look at Ucits products as attractive. However, there are pitfalls to putting any strategy into the framework and managers need to understand the rules and constraints

Video (sponsored forum): Ucits structures remain attractive to hedge funds
Alceda Fund Management, Bank of America Merrill Lynch, KB Associates and fund management company Salus Alpha Capital debate some of the reasons hedge funds are interested in Ucits vehicles.