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London, United Kingdom, 2007/08/11 - While the hedge fund market has been largely healthy, analysts predict that legislation that is due to come into force later this year in Europe, could impact its growth.
Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report which forecasts that new legislation may play its part in stunting the short-term growth for European hedge funds, even though the market is largely healthy.
“Hedge Funds in Europe 2007” predicts that a new directive that comes into effect in November this year, the Market in Financial Instruments Directive (MiFID) coupled with inherent product complexities are likely to be the prime obstacles for the growth of hedge funds.
The report explains that the global hedge fund market has seen appreciable growth, and notes that the European market contributed significantly to the revenue. They cite that there have been a record number of hedge fund launches in Europe in 2006, and attribute this to the popularity in investing in the hedge funds which are perceived as yielding improved returns.
Since hedge funds are a sophisticated form of risk-based investment, they are mainly distributed to the mass customer base by independent financial advisers in Europe. But MiFID, a range of tough legislation due to be introduced across Europe which aims to create a single financial services market with a single set of marketing, compliance, and investor protection rules could significantly increase costs and administration for fund managers. This in turn will be a factor to consider in the growth of hedge funds.
The study looks at the way these new regulations will impact the market and provides detailed information on the hedge fund markets in France, Italy, Spain, Germany, and the UK. It includes key market figures like the fact that global hedge funds assets being valued at USD1.5 trillion early last year. The report analyses the regulatory and distributory developments occurring in the European hedge fund industry.
The report puts together a specialised picture of the hedge fund industry in Europe based on interviews with premier asset managers in the continent. It contextualises the regulatory issues impacting the industry, and explains how these will affect the development of pan-European markets. Most significantly, it outlines the strategic options for developing a hedge fund offering with information on distribution and the competition expected.
“Hedge Funds in Europe 2007” is available from Report Buyer. For more information, please visit the website.
Report Buyer product ID: DAT05127
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