It is a contractual part of the job description of fund managers to complain incessantly about over-regulation. So when a piece of legislation comes along that appears to be wholly in their favour, one might expect them to grasp the opportunities. But surprisingly, few have taken advantage of the new regime for retail funds in Europe, the third version of the undertaking for collective investment in transferable securities, or Ucits III.

The latest Ucits rules give them more flexibility to create sophisticated products for the retail market, enabling the use of derivatives and investments in other funds.