14/06/2011 Author: Tony Griffiths

SEB and Conscendo launch energy-focused Ucits fund

Scandinavian bank SEB and Conscendo Asset Management, the Oslo-based alternatives manager, are poised to launch a new energy-focused Ucits hedge fund, as a growing number of Norwegian firms use onshore products as a means of returning to the hedge fund space.

The new fund, the SEB Prime Solutions – Conscendo Oil and Energy Ucits Fund, is due for imminent approval by the Luxembourg regulator and will debut via the SEB Ucits platform, Magnus Ward, SEB’s head of prime brokerage, told HFMWeek.

A number of other Ucits hedge funds are in the pipeline at SEB, including at least two further proposals from Norwegian asset managers.  

Current AuM in Norway’s hedge fund industry is estimated at around NKr30bn ($5.55bn) in about 25 vehicles. Several high-profile Norwegian managers shut down offshore funds in 2008, with the majority of assets in both the closed funds and the industry at large in funds of hedge funds.

“Most managers are looking for other investor groups to target and Ucits structures are the dominant vehicle to reach these investors, both retail and smaller institutions and pension funds,” said Christian Gomnaes, head of SEB’s Norway office.

“This change is happening at the moment, and we estimate five to six alternative Ucits launches in 2011 for Norwegian managers, with estimated inflows of about NOK3bn ($555m).”

It was hoped that newly enacted legislation from the Norwegian regulator would increase the number of Norway-domiciled hedge funds. Marketing restrictions, however, continue to create hurdles. “These issues are somewhat absolved with alternative Ucits funds,” Gomnaes added.