Hedge Funds in Europe 2007

Publication Date	May 2007
Publisher	Datamonitor
Product Type	Report
Pages	61
ISBN Number	not applicable
Product Code	DAT05127

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Summary

Introduction

The European Hedge fund market is going through a period of exponential growth. This report draws on Datamonitor's European Asset Management Market Leaders survey to deliver insights into the development of this market.

Scope

Provides detailed information on the hedge fund markets in France, Italy, Spain, Germany, and the UK.
Gives comprehensive analysis of regulatory and distributory developments occurring the European hedge fund industry.
Uses primary data from Datamonitor's European Alternative Investment Survey 2007 covering 102 asset managers in Europe.

Highlights

The global hedge fund market has grown by a significant amount in recent years, with assets in global hedge funds surging to USD1.5trn, as of March 2006.

The popularity of event-driven funds has played a significant part in shaping the formation of the top European hedge funds, as well as being a major contributor to overall hedge fund growth in the European market.

Despite the fear that hedge funds are overpriced propositions in the investment market, the strength of the sector continues to grow in line with burgeoning interest from the institutional sector and even a hint of demand from the more belligerent proportion of the mass market customer base.

Reasons to Purchase

Obtain a unique picture of the hedge fund industry in Europe based on the views of Europe's premier asset managers.
Understand the complex regulatory issues impacting the industry, and how these will affect the development of domestic and pan-European markets.
Ascertain the strategic options for developing a hedge fund offering, including information on distribution, target markets, and competition.

Content

Executive Summary
Market Context
Competitor Dynamics
Distribution Dynamics
Market Context
Introduction
- The Global Hedge Fund Market Has Seen Exponential Growth In Recent Years And Europe Has Been Responsible For A Significant Proportion Of That Growth
- The European Hedge Fund Market Has Been Driven By A Substantial Number Of Fund Launches
- Institutional Investors Have Regained Their Place As The Most Important Customer Group For Hedge Funds In Europe
- There Has Been A Considerable Amount Of Eu-Wide Hedge Fund Regulation In Recent Years
- The Eu Is Divided Over The Issue Of Hedge Fund Regulation
- The European Hedge Fund Market Is Expected To Grow At A Significant Rate
- The Hedge Fund Market Is Expected To Grow Over The Next Three Years, With Institutions Likely To Retain Their Status As The Main Customer Group
- Demand For Hedge Funds Across All Customer Bases Is Likely To Be Strong
- Data
- Competitor Dynamics
- Goldman Sachs Are Perceived As The Leading Institution In Building Hedge Funds Across Europe
- Data
- Distribution Dynamics
- Retail Banks Are The Primary Means Of Distributing Hedge Funds To Mass Market Investors In Europe
- Ifas Are Seen As The Key Distributors Of Hedge Funds To High Net Worth Clients Across Europe
- Direct Sales Forces Are The Best Way To Distribute Hedge Funds To Institutions Across Europe
- Data
Appendix
- Definitions
- Methodology
Further Reading
- Ask The Analyst
- Datamonitor Consulting
- Disclaimer
- Table Of Figures
- Figure 1: Institutional Clients Are Regarded As The Most Important Client Segment For Hedge Funds In 2007
- Figure 2: Hedge Funds Are The Most Popular Alternative Investment, According To Eu Asset Managers
- Figure 3: Hedge Funds Are Most Popular Among Wealthy Clients In Italy And The Uk
- Figure 4: Regulatory Difficulties Are Expected To Be The Major Barrier To Wider Take-Up Of Hedge Funds Among Institutional Clients Over The Next Three Years
- Figure 5: Regulatory Difficulties Were Cited As The Major Barrier To Wider Take-Up Of Hedge Fund Investments In The Spanish Market
- Figure 6: Both High Net Worth And Mass Market Sales Are Expected To Suffer Lack Of Investor Understanding Of Hedge Fund Products
- Figure 7: The Majority Of Eu Asset Managers Believe The Institutional Market Will See The Most Increase In Demand For Hedge Funds Over The Next Three Years
- Figure 8: Nearly Half Of All Eu Asset Managers Believe Institutions Will Constitute Their Biggest Client Group In The Next Three Years
- Figure 9: Over A Third Of Eu Asset Managers Believe Demand For Hedge Funds From The Mass Market Will Increase By Somewhere Between 5-10% Over The Next Three Years
- Figure 10: Most Eu Asset Managers Believe There Will Be Strong Growth In Demand For Hedge Funds Among High Net Worth Clients
- Figure 11: Over Two-Thirds Of Eu Asset Managers Predict Strong Growth In Demand For Hedge Funds From Institutional Investors Over The Next Three Years
- Figure 12: Goldman Sachs Are The Leading Hedge Fund Management Firm According To Eu Asset Managers
- Figure 13: Retail Banks Are Considered The Best Way To Distribute Hedge Funds To The Mass Market Across Europe
- Figure 14: Asset Managers In The Uk And Spain Believe Ifas Are The Most Appropriate Distribution Channel For Mass Market Investors
- Figure 15: Ifas Are The Best Means Of Distributing Hedge Funds To Wealthy Investors Across Europe
- Figure 16: Opinion Varies Among Individual Countries As To The Best Way Of Distributing Hedge Funds To Wealthy Clients
- Figure 17: Direct Sales Are The Best Means Of Distributing Hedge Funds To Institutional Clients Across Europe
- Table Of Tables
- Table 1: New European Hedge Fund Launches In 2006, Segmented By Number And Strategy
- Table 2: Top Ten New European Hedge Funds In 2006, Segmented By Assets And Strategy
- Table 3: Which Is Your Biggest Customer Group For Hedge Funds?
- Table 4: What Type Of Alternative Investment Fund Is Most In Demand By Your Wealthy Clients Or The Wealth Managers Who Offer Your Funds To Their Clients? (Choose Up To Three Options)
- Table 5: Number Of Responses From Eu Asset Managers Who Believe Hedge Funds Are One Of The Three Most In Demand Alternative Investment Fund Types Among Wealthy Clients Or Wealth Managers Who Offer Funds To Their Clients, By Country
- Table 6: Thinking Of Institutional Investors, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds Over The Next Three Years?
- Table 7: Thinking Of High Net Worth Customers, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds In The Next Three Years?
- Table 8: Thinking Of Mass Market Customers, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds Over The Next Three Years?
- Table 9: From Which Customer Base Will The Most Increase In Demand For Hedge Funds Come In Three Years' Time?
- Table 10: In Three Years, Which Will Be Your Biggest Customer Group For Hedge Funds?
- Table 11: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among Mass Market Investors?
- Table 12: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among High Net Worth Investors?
- Table 13: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among Institutional Investors?
- Table 14: Who Are The Three Best Asset Managers At Building Hedge Funds?
- Table 15: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To Mass Market Investors?
- Table 16: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To High Net Worth Investors?
- Table 17: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To Institutional Investors?
- Market Context
- Introduction
- The Global Hedge Fund Market Has Seen Exponential Growth In Recent Years And Europe Has Been Responsible For A Significant Proportion Of That Growth
- The Uk Continues To Dominate The European Hedge Fund Market
- London Has Now Taken The Crown Of Global Hedge Fund Hotspot From New York
- France Has One Of The Leading Asset Management Markets In Europe And Was One Of The First Countries To Establish A Legal Framework For Hedge Funds
- The Italian Hedge Fund Sector Has Grown At An Impressive Pace In
- The German Hedge Fund Market Is Growing But Has Achieved Less Than Impressive Returns
- Hedge Funds In Spain Have Been Subjected To New Regulation And Sales Are Estimated To Have Reached Around Eur12bn In
- The European Hedge Fund Market Has Been Driven By A Substantial Number Of Fund Launches
- Despite Fairly Low Returns, European Hedge Fund Launches Have Hit A Record High
- Event-Driven Funds Have Doubled In Popularity, But European Equity Continues To Be The Largest Investment Class For Hedge Funds Managed In Europe
- Event-Driven Hedge Funds Lead The Way In The List Of Top Ten New European Hedge Funds
- Institutional Investors Have Regained Their Place As The Most Important Customer Group For Hedge Funds In Europe
- Institutional And High Net Worth Individuals Are Key Customer Groups In The Hedge Fund Market
- Hedge Funds Are The Most Popular Alternative Investment Among Wealthy Clients
- The Uk And Italy Have The Highest Demand For Hedge Funds From Wealthy Clients
- Many Hedge Funds Have Been Accused Of Charging High Fees Without The Return
- Despite These Less Than Impressive Returns, Hedge Fund Assets Continue To Experience Significant Growth
- The Market For Hedge Fund Administrators Is Growing In Line With Increased Demands From Investors
- The Hedge Fund Administration Market Is One Characterized By Significant Opportunities For New Entrants
- Risk Management Is An Area That Requires Attention And Improvement
- There Has Been A Considerable Amount Of Eu-Wide Hedge Fund Regulation In Recent Years
- The Eu Is Divided Over The Issue Of Hedge Fund Regulation
- The Mifid Has The Potential For Significant Impact On Hedge Fund Managers Across Europe
- Compliance With The Eu Capital Requirements Directive Could Place European Firms At A Disadvantage Against Their Global Competitors
- The High-Profile Nature Of Hedge Funds Is Prompting Some Eu Governments To Consider New Legislation
- The Eu Has Enforced A Transparency Obligations Directive To Help Increase Transparency
- But Others, Such As The Eu Internal Market & Services Commissioner, Have Rejected Calls For More Rules
- The Mts Eurozone Government Bond Trading Platform Is Coming Under Increasing Pressure To Admit Hedge Funds
- Germany Has Put Hedge Fund Transparency At The Top Of Its Agenda In The Latest Round Of G7 Talks
- Spain Has Recently Introduced Hedge Fund Regulation Into The Domestic Market
- France Is At The Forefront Of Regulatory Innovation
- The Italian Hedge Fund Market Has Been Historically Restricted Somewhat By Regulation
- But Recent Developments Indicate That Italy May Be Moving Towards A More Liberalized Market
- The Uk Regulator Has Tried To Remain Positive In The Face Of Caution
- In Spite Of The Cautious Approach, There Are Plans To Open Up Hedge Funds To Small Investors
- The European Hedge Fund Market Is Expected To Grow At A Significant Rate
- Although Regulation Will Continue To Be An Issue For The Institutional Customer Base
- Asset Managers In Spain Are Particularly Concerned About The Effect Of Regulation And Lack Of Product Understanding On Institutional Growth
- For Individual Investors The Main Obstruction To Future Growth Is Product Complexity Across Europe
- The Hedge Fund Market Is Expected To Grow Over The Next Three Years, With Institutions Likely To Retain Their Status As The Main Customer Group
- Institutional Clients Are Likely To Demand Hedge Funds The Most In Three Years' Time
- The Institutional Client Base Will Also Be The Biggest For Hedge Funds In Three Years
- Demand For Hedge Funds Across All Customer Bases Is Likely To Be Strong
- Approximately 90% Of Asset Managers Believe Demand For Hedge Funds Will Increase By Some Degree Among Mass Market Investors Over The Next Three Years
- Most Eu Asset Managers Believe That Demand For Hedge Funds Among High Net Worth Investors Is Likely To Grow By A Significant Amount
- Over Two-Thirds Of Eu Asset Managers Believe The Institutional Client Base Will Exhibit Strong Growth In Demand For Hedge Funds Over The Next Three Years
- Data
- Competitor Dynamics
- Goldman Sachs Are Perceived As The Leading Institution In Building Hedge Funds Across Europe
- Goldman Sachs Has Created A Dedicated Alternative Investments Group Within Their Asset Management Arm
- Allianz Hedge Fund Partners Have Joined Forces With The Agf Alternative Asset Management
- Hail Is Hsbc's Dedicated Fund Of Hedge Funds Business
- Man Investments Is The Asset Management Division Of Man Group
- Axa Offer Hedge Funds Through An Alternative Management Team
- Data
- Distribution Dynamics
- Retail Banks Are The Primary Means Of Distributing Hedge Funds To Mass Market Investors In Europe
- But Asset Managers In Spain And The Uk Prefer Ifas
- While Fund Supermarkets And Direct Sales Are Unpopular Means Of Distribution Among The Mass Market
- Ifas Are Seen As The Key Distributors Of Hedge Funds To High Net Worth Clients Across Europe
- On A Country-Specific Scale, Opinion As To The Best Distribution Method Is Mixed
- Direct Sales Forces Are The Best Way To Distribute Hedge Funds To Institutions Across Europe
- In France, Investment Consultants And Direct Sales Are Equally Popular Methods
- Data
Appendix
- Definitions
- Arbitrage
- Cagr
- Derivative
- Funds-Of-Hedge Funds
- Fund Supermarket
- Hedge Fund
- Hnw
- Ifa
- Liquid Assets
- Mass Affluent
- Oeics
- Selling Short
- Ultra Hnw
- Unit Trusts
- Methodology
Further Reading
- Ask The Analyst
- Datamonitor Consulting
- Disclaimer
List Of Tables
- Table 1: New European Hedge Fund Launches In 2006, Segmented By Number And Strategy
- Table 2: Top Ten New European Hedge Funds In 2006, Segmented By Assets And Strategy
- Table 3: Which Is Your Biggest Customer Group For Hedge Funds?
- Table 4: What Type Of Alternative Investment Fund Is Most In Demand By Your Wealthy Clients Or The Wealth Managers Who Offer Your Funds To Their Clients? (Choose Up To Three Options)
- Table 5: Number Of Responses From Eu Asset Managers Who Believe Hedge Funds Are One Of The Three Most In Demand Alternative Investment Fund Types Among Wealthy Clients Or Wealth Managers Who Offer Funds To Their Clients, By Country
- Table 6: Thinking Of Institutional Investors, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds Over The Next Three Years?
- Table 7: Thinking Of High Net Worth Customers, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds In The Next Three Years?
- Table 8: Thinking Of Mass Market Customers, What Do You Think Will Be The Major Barriers To Wider Take-Up Of Hedge Funds Over The Next Three Years?
- Table 9: From Which Customer Base Will The Most Increase In Demand For Hedge Funds Come In Three Years' Time?
- Table 10: In Three Years, Which Will Be Your Biggest Customer Group For Hedge Funds?
- Table 11: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among Mass Market Investors?
- Table 12: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among High Net Worth Investors?
- Table 13: Over The Next Three Years, How Do You Think Demand For Hedge Fund Investments Will Change Among Institutional Investors?
- Table 14: Who Are The Three Best Asset Managers At Building Hedge Funds?
- Table 15: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To Mass Market Investors?
- Table 16: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To High Net Worth Investors?
- Table 17: What Do You Think Is The Best Way For Hedge Fund Investments To Be Distributed To Institutional Investors?
List Of Figures
- Figure 1: Institutional Clients Are Regarded As The Most Important Client Segment For Hedge Funds In
- Figure 2: Hedge Funds Are The Most Popular Alternative Investment, According To Eu Asset Managers
- Figure 3: Hedge Funds Are Most Popular Among Wealthy Clients In Italy And The Uk
- Figure 4: Regulatory Difficulties Are Expected To Be The Major Barrier To Wider Take-Up Of Hedge Funds Among Institutional Clients Over The Next Three Years
- Figure 5: Regulatory Difficulties Were Cited As The Major Barrier To Wider Take-Up Of Hedge Fund Investments In The Spanish Market
- Figure 6: Both High Net Worth And Mass Market Sales Are Expected To Suffer Lack Of Investor Understanding Of Hedge Fund Products
- Figure 7: The Majority Of Eu Asset Managers Believe The Institutional Market Will See The Most Increase In Demand For Hedge Funds Over The Next Three Years
- Figure 8: Nearly Half Of All Eu Asset Managers Believe Institutions Will Constitute Their Biggest Client Group In The Next Three Years
- Figure 9: Over A Third Of Eu Asset Managers Believe Demand For Hedge Funds From The Mass Market Will Increase By Somewhere Between 5-10% Over The Next Three Years
- Figure 10: Most Eu Asset Managers Believe There Will Be Strong Growth In Demand For Hedge Funds Among High Net Worth Clients
- Figure 11: Over Two-Thirds Of Eu Asset Managers Predict Strong Growth In Demand For Hedge Funds From Institutional Investors Over The Next Three Years
- Figure 12: Goldman Sachs Are The Leading Hedge Fund Management Firm According To Eu Asset Managers
- Figure 13: Retail Banks Are Considered The Best Way To Distribute Hedge Funds To The Mass Market Across Europe
- Figure 14: Asset Managers In The Uk And Spain Believe Ifas Are The Most Appropriate Distribution Channel For Mass Market Investors
- Figure 15: Ifas Are The Best Means Of Distributing Hedge Funds To Wealthy Investors Across Europe
- Figure 16: Opinion Varies Among Individual Countries As To The Best Way Of Distributing Hedge Funds To Wealthy Clients
- Figure 17: Direct Sales Are The Best Means Of Distributing Hedge Funds To Institutional Clients Across Europe