Hedge Funds in Europe 2007

Published by: Datamonitor

Published: May. 1, 2007 - 61 Pages

Table of Contents

Overview

Catalyst

Summary

Methodology

Executive Summary

Market Context

Competitor Dynamics

Distribution Dynamics

Table of Contents

Overview

Catalyst

Summary

Methodology

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?

Abstract

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.

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