Finisterre Rolls Out Insurer-Friendly UCITS Fund

Oct 14 2013 | 1:55pm ET

Finisterre Capital has launched a UCITS-compliant fund in an effort to hold on to some key clients.

The London-based firm's decision to set up an onshore fund was prompted not by the European Union's new hedge fund rules—but by its new insurance rules. Under the so-called "Solvency II" capital rules, insurers will have to set aside more capital to invest in offshore hedge funds. The threat led one Finisterre client to move to redeem from the firm, until Finisterre moved to launch the new strategy.

The new fund could prove a boon to the firm, according to co-founder Paul Crean.

"We believe this will appeal to other insurance investors, particularly in Asia and Europe, because of the Solvency II regulations," he told Reuters. "The fund will have slightly lower returns, slightly less leverage and probably less volatility."

Finisterre will also charge slightly lower fees: 1.5% for management and 15% for performance.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...