MFA Managed Funds Association : Report: AIFMD Likely Leads To Higher Costs

Posted on January 5, 2015

One of the key takeaways from recently released Preqin data dealt with the impact the European Union's Alternative Investment Fund Managers Directive (AIFMD) would have on the industry.

Nearly 60 percent of fund managers saw the new regulatory directive as a "key challenge" for the upcoming year and almost that same percent viewed the directive's compliance cost as being more costly than originally expected. This percentage of managers reporting that AIFMD will have a negative impact on the alternatives industry remains largely unchanged from a previous Preqin study done last summer.

The Preqin survey covered slightly more than 10,900 hedge funds.

Preqin also looked into 2014 returns. Commodity Trading Advisor (CTA) accounts saw among the highest returns. Through November, CTAs generated their highest net returns since 2010.