With UCITS V, $9T Isn’t as Easy as It Used to Be

Originally published as a guest blog in Wall Street & Technology on August 21, 2014 

The world is one big pool of capital, split between different domiciles and different investment types. Most asset managers, regardless of size, have found that avenues for growth are fairly limited if you stick to just one region and one fund type. If you want more of that capital, if you want more of the pool, if you want more revenue, you need to branch out. If you offer separately managed accounts (SMAs), launch a pooled investment vehicle. If you manage hedge funds, launch a liquid alt fund. If you are a U.S. mutual fund manager, launch a UCITS fund.

Crossing regions, but keeping the investment type roughly the same, often presents fund managers with the best opportunity for growth. Any new market will require a new distribution network, but from a product point of view, you already have the factory – the investment strategy, the portfolio manager, and the analysts – all in place. You “just” execute those functions for both a ‘40 Act fund and a UCITS fund.