Introduction
Strong hedge fund performance during the equity bear market of 2000-2003 has captured investors’ imaginations. This report analyses the major factors that will shape the European hedge fund market for the next five years with a particular emphasis on the effect of regulation. It sizes the European private client hedge fund market and forecasts it forward.
Scope
Covers the big five European countries, France, Germany, Italy, Spain, UK.
Covers the following issues affecting the private client hedge fund market: regulation, performance, fees, valuation, disclosure, distribution.
Forecast the private client hedge fund marker to 2007.
Report Highlights
39% of European wealth managers see regulatory difficulties as the major barrier to hedge fund investment in the European market. However the increasing popularity of hedge fund investments has forced regulators to review this situation and legislative changes are occurring in many European territories.
Some wealth managers believe that should a period of sustained equity growth reoccur, the hedge fund market would decline. However hedge fund investment has wider motivations. 70% of wealth managers see increasing diversification or the ability to gain an absolute return as the primary reason for investing in hedge funds.
Datamonitor estimates that the total size of the European HNW hedge fund investment market at around EUR60bn in 2003, representing around 75% of European hedge funds. Datamonitor believes that regulatory changes allowing wider distribution and creating greater clarity will help to drive growth of more than 20% per annum in the HNW market to 2007.
Reasons to Purchase
Understand how regulation of the hedge fund market will change your market going forward
assess the problems with offering hedge funds to HNW customers and how these can be dealt with
forecast the growth of the market and the opportunities it creates