15/02/2012 Author: Will Wainewright

Acta platform to replace FoHFs with Ucits offerings

Acta, a Nordic financial services group worth NKr30bn ($5.2bn), is looking to offer Ucits hedge funds to clients after removing funds of hedge funds (FoHF) from its platform, HFMWeek has learned.

The third-party distributor had 1% of its platform allocated to FoHFs before 2008, but dropped them in the wake of tighter restrictions on  firms offering offshore products to non-professional investors.

The group is now looking to build up a Ucits offering and is currently in the process of gauging demand from investors, a spokesperson said, before beginning the search for managers to take on.

Acta’s entry into the Ucits distribution space, which could initially take up a $50m chunk of its platform, would offer managers a significant opportunity to tap the Norwegian investment universe.

Christian Gomnaes, who runs the Norway office for SEB, the Scandinavian bank and fund manager, said he expected the distribution of Ucits hedge funds in the country to increase significantly now that they can be marketed to non-professional investors. The organisation is due to launch its third Norwegian Ucits product in March.

“Ucits allows non-expert investors to access hedge fund strategies they wouldn’t be able to through conventional offshore vehicles,” he said. “We will see more on offer in the next couple of years as providers look to capitalise on interest from the Norwegian retail market.”

However, Acta’s investment director, Ann-Elisabeth Tunli Moe, emphasised to HFMWeek that plans were at an “early stage”. She said: “We are still in talks with investors and the final shape of any Ucits offering will depend on market conditions and client demand. The Ucits funds we take on are likely to use simple strategies.”

Alternative Ucits funds have started the year well, rising 1.27% on average during January following a loss of nearly 4% last year, according to the Alix Capital Blue Chip Ucits Index.