Press Review UCITS Hedge Funds Platforms

Hedge Fund UCITS platforms:
Press Review
UCITS Hedge Funds Platforms
March–December 2010
KdK Asset Management Ltd
11 Albert Bridge Road
London SW11 4PX
United Kingdom
Tel: +44 (0)207 127 46 72
Fax: +44 (0)845 003 7991
Email: [email protected]
Investor demand for UCITS Hedge Funds is
strong, fuelled by concerns about
transparency, risk management and
liquidity.
An increasing number of investors are
looking for UCITS to add to their hedge
fund portfolio. UCITS constitutes a real
opportunity to access, to retain or to
increase investments from institutional
investors.
It is therefore not surprising that a very
significant number of hedge fund
managers are either managing or seriously
considering the launch of a UCITS hedge
fund in the coming year.
The emergence of so-called ‘UCITS
platforms’ developed by some investment
banks and investment managers to
facilitate the launch of such vehicles is a
further indication that we are in the
presence of a solid and sustained trend.
The objective of this document is to
provide for an overview of the articles
published between 03/2010 and 11/2010
about the activity of these platforms.
KDK Asset Management Ltd. is a FSA regulated investment management company focused on
delivering innovative and superior investment solutions.
KDK works in partnership with hedge fund managers and fund of hedge fund managers,
providing assistance in the structuring and development of a UCITS offering
CQS aims for Ucits convertibles
launch
profile and performance of QCM‟s flagship
Convertible arbitrage is set to become the next
Programme (GDP)… More
hedge fund strategy to enter the regulated
Newcits realm.
CQS, a convertibles, credit and asset-backed
securities specialist with $6.7bn (£4.4bn, €4.9bn)
of assets under management, hopes to launch a
Ucits III convertibles fund in conjunction with
JPMorgan in early April, subject to regulatory
approval … More
managed futures product, Global Diversified
US hedge fund Zweig Dimenna to
launch Ucits fund
New York-based hedge fund Zweig Dimenna
Associates is teaming up with Bank of America
Merrill Lynch to bring its long short equity skills
to Europe with a Newcits fund, Citywire can
reveal.
The firm, which is headed up by Joseph
Long/short equity fund launches on
Merchant’s Ucits platform
Dimenna and Martin Zweig, was founded in
Merchant Capital, a Ucits III platform provider
investing… More
to the hedge fund industry, has announced that
its first client is now fully operational.
Robert Maxwell of Tressis will act as investment
adviser to the fund, named the Merchant
European Equity Fund, while Merchant Capital
is the fund‟s investment manager… More
Matrix launches Asia long/short fund
Matrix has launched its first Ucits III fund, a
pan-Asian long/short equity strategy.
The Matrix Asia Ucits fund will be managed by
Rupert Foster, who also runs the Cayman
domiciled Matrix Asia portfolio.
Foster will operate a similar investment strategy
across both funds, investing in markets
including China, Japan, India, Korea, Hong
Kong, Taiwan, Australasia and Singapore…
More
QCM launches UCITS compliant
managed futures fund
UK-based, systematic macro hedge fund
manager Quality Capital Management (QCM)
has launched the DB Platinum IV QCM GDP
Index Fund, a UCITS III compliant fund, which
offers daily liquidity, is registered in
Luxembourg and is part of Deutsche Bank‟s db
funds platform. It replicates the investment
1984 and is considered a pioneer in long/short
Schroders adds second fund to its
GAIA UCITS platform
Schroders has announced the launch of a second
fund on its Schroder GAIA platform - a
regulated, transparently operated platform for
UCITS funds designed to give investors easier
access to hedge funds. The new fund, Schroder
GAIA Sloane Robinson Emerging Markets, will
launch on 30 June 2010 and will be managed by
Sloane Robinson, a long/short equity manager
with significant expertise in emerging markets…
More
Toscafund unveils Ucits version of
Cayman fund
Toscafund has launched a Ucits III version of its
top performing offshore UK mid-cap long/short
fund.
The Tosca Midcap Ucits fund, launched Friday,
will sit on Deutsche Bank's DB Platinum
Luxembourg platform, as the firm seeks to gain
access to a new investor base… More
Sabre to launch Ucits version of Style
Arbitrage hedge fund
Quant specialist Sabre Fund Management is the
latest hedge fund to join the Newcits fund
UCITS PLATFORMS
launch rush, as it seeks to bring its market
neutral strategy to a wider audience.
Natixis ready to launch new Ucits III
platform
In conjunction with Luxembourg Financial
Natixis, the French banking titan, is poised to
Group, the London-based boutique is launching
debut a new Ucits III platform as it relaunches
a Ucits III mirror of its Cayman-based hedge
its former managed accounts platform as a
fund Sabre Style Arbitrage fund, which was
vehicle for Ucits-compliant hedge funds,
launched in 2002… More
HFMWeek can exclusively reveal.
Deutsche Bank rolling out Newcits
The bank has remodelled Sixtina, once the home
of over 30 managed accounts, to cater for so-
Deutsche Bank plans to launch an alternative
called „Newcits‟ funds and is due to unveil its
Ucits III fund every three weeks, it says.
first Ucits manager within the next few weeks…
The bank‟s Ucits platform, db funds, is in
More
discussions with hedge fund clients and expects
to roll out 15 alternative mutual funds over the
next few months… More
Lazard and Matrix unveil convertible
arbitrage Newcits
Paulson Ucits fund: will Europe's
selectors invest in it?
The news this week that US hedge fund legend
John Paulson is teaming up with Deutsche Bank
to launch a Ucits III fund was one of the biggest
Matrix has revealed the full details of their new
fund stories of 2010, yet selectors have reacted
convertible arbitrage Ucits III fund, Matrix
stoically.
Lazard Opportunities.
He is one of the world's best known and most
Matrix will be distributing the fund while
successful fund managers; his Credit
Lazard will serve as the sub-investment
Opportunities fund returned 690% in a year
manager, having previously run the strategy in
during the sub-prime crisis. So why are fund
a hedge fund format… More
selectors sceptical about the most high profile
Deutsche Bank and Winton launch
UCITS III fund
entrant yet into the Newcits arena? … More
Deutsche Bank and Winton Capital
Morgan Stanley and PSAM launch
UCITS III Fund
Management („Winton‟) announce the launch of
Morgan Stanley has announced that it has
a UCITS III compliant version of Winton‟s
launched its first UCITS III Fund on the Firm‟s
flagship Diversified Program.
FundLogic platform managed by an alternative
The UCITS III fund, called the DB Platinum IV
manager. This fund will be managed by
dbX Systematic Alpha Index Fund („The Fund‟),
P.Schoenfeld Asset Management LP and will
which will be launched on Deutsche Bank‟s
offer exposure to a global event-driven
Platinum platform is linked to the performance
investment strategy.
of the dbX Systematic Alpha Index. … More
Commenting on the new fund launch, Shahzad
Sadique, Executive Director and Head of
FundLogic at Morgan Stanley said, “we are
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UCITS PLATFORMS
seeing a huge level of interest from investors to
announcement and the fund has yet to be
access alternative asset manager expertise
widely promoted… More
through UCITS Funds and are delighted that
PSAM has partnered with Morgan Stanley…
More
GAM launches market neutral credit
Ucits fund with US manager DCI
GAM has partnered with California-based
Universal-Investment and York launch
merger arbitrage strategy as Ucits fund
management company DCI to unveil a Ucits-
Universal-Investment and New York-based
The GAM Star Diversified Market Neutral
hedge fund specialist York Asset Management
Credit Fund will invest in a long and short
have launched an absolute return fund, The
portfolio of mispriced, predominately
York Lion Merger Arbitrage Liquidity Fund UI.
investment grade credit. Both the long and short
The fund is based upon The Lion Fund and is
sides of the portfolio will invest in up to 120
the first global merger arbitrage strategy
companies using solely credit default swaps
launched as a as Ucits fund in Europe… More
(CDS). Each position will contribute a similar
compliant market neutral credit fund.
amount of credit risk to the portfolio… More
New UCITS Platform Chief at
Deutsche Bank
Angharad Fitzwilliams has taken over from
GAM kicks off emerging markets
equity long/short Ucits fund
James Orme-Smith, who left the firm last month
GAM has launched its second Ucits fund in two
to join Bank of America Merrill Lynch,
weeks by bringing its emerging markets equity
HFMWeek reports. Fitzwilliams, Deutsche
long/short strategy onshore. The GAM Star
Bank‟s hedge fund capital group chief, is one of
Absolute Global Emerging Markets fund will be
several Deutsche Bank executives to assume
managed by Sean Taylor who is based in GAM's
Orme-Smith‟s former responsibilities.
Dubai office.
The Deutsche Bank platform, Platinum, has
The Irish-domiciled Ucits-compliant fund will
been lining up a star-studded roster of UCITS
invest in emerging markets with a particular
III-compliant hedge funds, including Paulson &
focus on Brazil, Russia, India and China (Bric)
Co. and Traxis Partners… More
economies and markets including Turkey, the
Gulf Co-operation Council (GCC) countries,
Schroders adds two Newcits funds to
GAIA platform
Indonesia, Egypt and other African and
southeast Asian economies… More
Schroders has expanded its GAIA Newcits
compliant funds.
ML Capital launches new Ucits
platform
The Schroder GAIA Opus Multi Strategy fund, a
ML Capital, the Malta-based financial
fund of hedge funds, was soft-launched at the
management firm, has launched its new Ucits-
end of June but the group made no public
compliant hedge fund platform, after having
range with the launch of two new Ucits
lobbied Ireland‟s Financial Regulator for a
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UCITS PLATFORMS
change to sub-fund branding rules, HFMWeek
can exclusively reveal.
Hedge Fund Launch: Merchant Global
Resources UCITS Fund
Domiciled in Ireland, The Montlake Ucits
UCITS umbrella providers to the global hedge
Platform is to launch its first fund on 1 October.
fund industry, Merchant Capital launched their
Two more funds are to be brought onboard by
third fund, the Merchant Global Resources
the end of the year, with a capacity for 10-15
UCITS Fund.
funds in total – expected to be filled in 12-24
“We are delighted to be launching the Merchant
months… More
Global Resources Fund.” George Cadbury, co-
SEB Enskilda launches Ucits platform
founder of Merchant‟s UCITS umbrella, said,
“This strategy is a perfect fit for a UCITS fund
Prime broker SEB Enskilda has unveiled a
and will be attractive to investors because of the
platform to host Ucits-compliant hedge funds.
manager‟s track record and the transparent
The business, known as SEB Prime Solutions, is
nature of the fund structure. Commodity
aimed at taking advantage of the demand for
Intelligence‟s level of experience and success is
Ucits hedge funds.
indicative of the type of markets we are
The Luxembourg-domiciled platform is
targeting.” …More
structured as an umbrella Sicav (société
provides alternative asset managers with the
ABN AMRO joins forces with Lyxor
for hedge funds
legal structure, risk management and
ABN AMRO Private Banking has joined
administration services necessary for a Ucits-
together with Lyxor Asset Management to
compliant hedge fund. SEB said it expected to
strengthen the bank‟s hedge fund solutions for
host seven funds by the end of 2010 with over
clients in a number of its European and Far East
€100 million ($130 million) in assets under
locations.
management… More
The partnership will give the bank‟s clients the
d'investissement à capital variable) and
Matrix plans Ucits III versions of
hedge funds
double benefits of access to a selection of
Lyxor‟s hedge fund products, based on the
firm‟s managed accounts and the bank‟s own
Matrix is planning to launch a range of Ucits III
open architecture principles as well as the key
funds, the first of which is likely to be an Eastern
requirements of transparency and liquidity, as
European equity fund with a focus on Russia.
well as control and ownership of assets from
The group wants to develop a retail Ucits
Lyxor‟s platform… More
version of its New Europe hedge fund, which
Republic, Austria, Greece and Turkey. At
French firms tie up for Newcits
platform
present it is an offshore vehicle accessible via a
Asset managers Alma Capital and the UFG-LFP
Sipp or to institutional investors, with a $100,000
Group have launched a Newcits platform as
subscription...More
they seek to provide institutional investors with
also invests in the markets of Poland, the Czech
access to talented hedge fund managers.
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UCITS PLATFORMS
Alma Capital Management will be responsible
for the platform, which will take care of the
Merchant signs agreement for Ucits
distribution in Austria and Germany
marketing of the Newcits funds likely to be
Merchant Capital, the independent Ucits
launched at a rate of two or three per year…
umbrella provider to the hedge fund industry,
More and French Article
has formed a partnership with Altarius Group
BlueCrest to liquidate Ucits fund
to provide lines of distribution across Austria
and Germany for its stable of Ucits funds.
BlueCrest Capital, Europe‟s third largest hedge
Merchant already has distribution agreements in
fund is to liquidate a $630m fund that it
place with a number of regional specialists in
launched last year. The BlueCrest BlueTrend
the UK, Spain, France, Scandinavia, Switzerland
Ucits fund – which was an onshore version of
and Benelux enabling access to retail and
the firm‟s successful computer-driven $9bn
institutional investor communities… More
BlueTrend fund – is to be shut down on
The move is one of the first backsteps in the
Merrill Lynch adds big names to Ucits
platform
recent growth of Ucits-compliant hedge fund
Merrill Lynch Investment Solutions (MLIS), the
vehicles. Ucits funds, which are regulated by
largest dedicated Ucits platform in the hedge
European law, have historically been used
fund space, has added three big-name funds in
exclusively by long-only asset managers. The
the past month, responding quickly to the loss
BlueTrend fund was the single largest in more
of the BlueCrest BlueTrend Ucits fund.
than $100bn worth of Ucits hedge funds that
The new additions are: the Graham Capital
have been launched in the past 18 months…
Systematic Macro UCITS Fund, the first Ucits
More
product from $6.8bn US hedge fund giant
November 30, the Financial Times has learned.
Estlander unveils managed futures
Ucits hedge fund
Graham Capital; the York Asian Event-Driven
UCITS Fund, the second onshore vehicle from
Jamie Dinan‟s York Capital; and the Zweig-
Finnish alternative investment company
DiMenna US Long-Short Equity UCITS Fund,
Estlander & Partners has launched a Ucits III-
the first Ucits offering from New York-based
compliant managed futures hedge fund on the
Zweig-DiMenna Associates… More
Universal Investment platform. The Estlander &
company's offshore systematic Global XL and
Lux Ucits platform nears launch of first
funds
Alpha Trend strategies through a total return
The launch of Luxembourg Financial Group's
swap.
(LFG) new Ucits umbrella, the Luxembourg
The strategies invest in equity indexes, interest
Alternatives Ucits Platform (LAUP), is edging
rates, currencies and commodity indexes using a
closer, with the first fund expected to launch at
proprietary quantitative investment model…
the end of the month, a senior LFG executive
More
told HFMWeek.
Partners Freedom Fund UI combines the
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UCITS PLATFORMS
According to Gareth James, head of LFG's hedge
Already this year, Morgan Stanley (FundLogic
fund solutions division, two of the platform's
Alternatives), ML Capital (Montlake) and
ten mandates - the first Ucits offerings from UK-
Merchant Capital have launched dedicated
based Sabre Fund Management and US-based
platforms, bringing the total number up to six…
CastleRock - could be set up within the next two
More
weeks. The Sabre fund, which has been delayed
following problems with its swap agent, is
Traxis to Launch UCITS Hedge Fund
expected to launch with €25m ($34m), and
Traxis Partners, the hedge fund led by former
CastleRock with €35m ($47.6m)… More
Morgan Stanley chief strategist Barton Biggs, is
set to launch a UCITS III-compliant version of
Gottex Solutions Services and OFI
Group in Ucits joint venture
its flagship strategy.
OFI Asset Management and Gottex Solutions
weeks, Ucits Hedge reports. The new fund will
Services intend to enter into a joint venture
be a part of Deutsche Bank's UCITS platform,
called Luma Solutions Services, a Luxembourg
Platinum, which also features UCITS funds from
based platform providing onshore managed
Paulson & Co. and Toscafund Asset
account services to Ucits and other European
Management… More
Traxis will announce the new fund within
onshore funds with an initial asset base of
The formation of the joint venture is subject to
Winners revealed for Ninth European
Fund of Hedge Funds Awards 2010
approval from the Luxembourg regulatory
Aberdeen Orbita Capital Return from Aberdeen
authorities.Luma Solutions Services will be the
Asset Management was named Hedge Funds
first independent platform offering managed
Review Fund of Hedge Funds of the Year at the
accounts services for both Ucits III and non
Ninth European Fund of Hedge Funds Awards
Ucits III onshore funds to European and
2010 ceremony.
international clients… More
GAM's GAM Trading II FoHF scooped the
USD350m (EUR250m).
coveted FoHF of the Decade award while
UCITS platforms expected to grow by
USD7billion in 2011
Merrill Lynch Investment Solutions was
Research undertaken by HFMWeek suggests
managed account platform was given to
that dedicated UCITS platforms could
Deutsche Bank's X-markets Hedge Fund
potentially attract USD7billion in asset inflows
Platform… More
recognised as the best Ucits platform. The best
by the end of next year. In what is one of the
to dominate well into next year as hedge fund
Merrill Lynch’s MLIS platform
bolstered by three new fund additions
managers and traditional long-only fund houses
After the recent decision to remove the
converge in the UCITS space.
BlueTrend fund, Bank of America Merrill
The common denominator: investors looking for
Lynch‟s MLIS platform, widely regarded as the
greater liquidity and absolute return strategies.
industry‟s leading Ucits platform, has
fastest growing fund sectors, “newcits” look set
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UCITS PLATFORMS
responded quickly. In the past month, three
Debate rages on future of platform
major funds have been onboarded, each with
market
USD10million in AUM in seed capital – they
include the Graham Capital Systematic Macro
Ucits, York Asian Event-Driven Ucits and
Zweig-DiMenna‟s US Long-Short Equity Ucits.
“We‟re looking to create a diversified range of
strategies for our clients to give them top quality
choice,” Head of MLIS Miriam Muller told
Hedgeweek… More
SAM Capital launches first UCITS
Opposing views have emerged on the future of
the platform market, with some companies
expecting a consolidation while others predict
new launches.
Investment Adviser revealed last week Matrix
Group had launched a Ucits platform which it
expected to expand in 2011.
Besides this, Harry Kerr, managing director of
independent platform Avalon Investment
Services said market consultant and analyst The
fund through SEB platform
Platforum had reported another four providers
SEB Prime Services will help market the fund
were likely to launch propositions in the next
through its “one-stop shop offering”
12-18 months… More
Allow managers to focus on generating
returns
The HFMWeek Ucits top 10
Fund to replicate equity opportunity
The swelling numbers of Ucits-compliant hedge
fund
fund launches over the last two years has shown
SAM Capital Partners plans to launch a new
that the vehicle‟s popularity is more than just a
UCITS fund through SEB Prime Solutions in a
fad, and while the challenges of compliance and
bid to capitalise on the growing market,
distribution remain for those looking to launch,
according to SEB Enskilda… More
a number of platforms have opened up to add
managers. HFMWeek charts the ten biggest
SocGen launches Ucits platform
players in the space and looks at how their
French giant Société Générale has launched
platforms are structured… More
what it describes as a „one-stop solution‟ for
fund managers setting up or redomiciling funds
under Ucits regulations.
The new service, called UCITS Funds Solution
will combine the custody, trustee,
administration, execution and finance tools
required to set up Ucits compliant funds, along
with the core services required to operate
them… More
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UCITS PLATFORMS
December - 2010
This document is composed of a series of partial articles downloaded from the internet (free access) which have been combined in a single document for convenience purposes. All articles can be accessed directly through
the corresponding URL and do not reflect KdK’s views or opinions.
This document has been prepared by KDK Asset Management Ltd, it is for information purposes only and should not be construed as investment advice or an offer to sell (nor the solicitation of an offer to buy) any of the
securities it refers to. Neither this document nor the securities referred to herein have been registered or approved by any regulatory authority of any country or jurisdiction.
This material is confidential and intended solely for the information of the person to whom it has been delivered and may not be distributed in any jurisdiction where such distribution would constitute a violation of
applicable law or regulation.
While this document represents the author’s understanding at the time it was prepared, no representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the
information contained herein, nor it is intended to be a complete statement or summary of the securities markets or developments referred to in the document. It should not be regarded by recipients as a substitute for the
exercise of their own judgement.
Investing in securities and other financial products entails certain risks, including the possible loss of the entire amount invested. Certain investments in particular, including those involving structured products, futures,
options and other derivatives, are complex, may entail substantial risk and are not suitable for all investors. The price and value of, and income produced by, securities and other financial products may fluctuate and may
be adversely impacted by exchange rates, interest rates or other factors. Information available on such securities may be limited. The securities described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. You should obtain advice from your own tax, financial, legal and accounting advisers to the extent that you deem necessary and only make investment decisions on the basis of your objectives,
experience and resources.
Past performance is not necessarily indicative of future results.
Unless specifically stated otherwise, all price information is indicative only.
No liability whatsoever is accepted for any loss (whether direct, indirect or consequential) that may arise from any use of the information contained in or derived from this document. KDK does not provide tax advice and
nothing contained herein is intended to be, or should be construed as a, tax advice. Recipients of this report should seek tax advice based on the recipient’s own particular circumstances from an independent tax adviser.
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