1) The document discusses the growth of regulated investment funds like UCITS funds in replacing offshore hedge funds. It summarizes the issues with offshore hedge funds like lack of transparency and regulatory oversight. 2) Performance of traditional investments like bonds and equities have been lower than liabilities in recent years, making alternatives like hedge funds more attractive for pension funds. However, hedge funds also face challenges of low yields and volatility. 3) Going forward, there is a trend toward more regulated and transparent onshore funds that provide downside protection and absolute returns. UCITS funds are growing rapidly in Europe and address investor needs for liquidity, transparency and tax efficiency.