AIFMD covers all non-Ucits, and their managers, that are distributed in the EU; it will have substantial implications for third countries such as Switzerland. A liberal delegation principle comparable with that in the case of Ucits would be a good solution for Swiss managers, the SFA said.
The Swiss hedge fund industry is well positioned but the implications of the Directive on Alternative Investment Fund Managers are still unclear, the Swiss Funds Association says.
At an SFA media conference, Hans-Jörg Baumann, chairman of the Alternative Investment Council and chief executive and chairman of Swiss Capital Alternative Investments, addressed the current situation for hedge funds.
“The alternative investment industry is on a growth path, above all in the institutional segment. Viewed over a longer period, alternative investments generate clear added value for investors compared with traditional benchmarks in the form of higher returns coupled with reduced risk,” says Baumann.
Due to the financial crisis, liquidity and security are the aspects that investors are focusing on above all. Providers have responded to this with the separation of liquid and less-liquid strategies, as well as customised solutions. There is also a clear demarcation being made between products for private clients and those for institutional investors.
“Institutional clients are currently placing more emphasis on risk, processes and structures than before the financial crisis. Multi-manager concepts are very well suited for many of them, although these solutions are resource-intensive. However, funds of hedge funds, managed accounts and Ucits III also offer good investment opportunities,” says Chris Manser, global head of funds of hedge funds at AXA Investment Managers.
There are currently two very different versions of the AIFM directive. The SFA says it is not possible at this juncture to gauge who will gain the upper hand in the three-way negotiations between the Council of the European Union, the European Commission and the European Parliament. Given that the directive covers all non-Ucits, and their managers, that are distributed in the EU to professional investors, it has substantial implications for third countries such as Switzerland.
“For Swiss asset managers, a liberal delegation principle comparable with that in the case of Ucits would be a good solution. As regards the possibility of marketing third-country funds, we also hope that our members will be able to continue to market these at least in individual EU member states on the basis of existing national regulations,” says SFA chief executive Matthäus Den Otter.
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