Multi-billion hedge fund platform closes Jersey funds

Friday 12 January 2018

A $19billion European platform for hedge funds is dropping funds registered in offshore jurisdictions, including Jersey, following calls from pension funds.

Paris-based Lyxor Asset Management is reported to have decreased the number of offshore funds it holds by as much as 70%.

Lyxor, which is owned by Société Generale, was prompted by calls from pension funds for better regulated investment structures, Financial News reported.

Its offshore funds are either being closed down or transformed into onshore Ucits (Undertakings for Collective Investment in Transferable Securities) products.

The company’s head of hedge fund research, Philippe Ferreira, explained that its portfolio had reduced its offshore hedge funds from 50 to 25 in the past two years, and that this figure was set to drop further to around just 15.

Pictured: Lyxor is owned by Societe Generale. (Mohammed Yahya/Wikipedia)

He said that the company’s move away from offshore funds reflected, “…a market trend where European investors are more likely to invest in alternative funds, but specifically into alternative Ucits, where the rise in appetite has been quite impressive.”

A spokesperson told International Investment that the decision to close a selection of Jersey funds was “in line with Lyxor’s strategic goal of refocusing its multi-management expertise.”