When I import a character from CC3 to Unreal, the hair textures display as expected. However, when I assign that very same CC3 skeleton an animated asset from iclone, the hair textures vanish, and the hair looks like the underlying modeling material.   

When I import the animation from iClone, I do the following

- do not import skeleton
- do not import mesh
- do not import textures
- do not import materials

The hair texture is assigned properly & automatically via CC3 Auto Setup.  Basically, when exporting animations from iClone, all that should be imported into Unreal is the underlying animation information.  Within Unreal, since the hair shows properly on the CC3 skeleton, the hair should also display properly during animation.  Nothing is really changing.  Yet, the hair acts as if it's some type of new mesh.

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Solved: if I retarget the animations to a new skeleton, the shaders update with that skeleton's shaders. Not retargeting the animation uses shaders from another skeleton, which may or may not match, creating potential problems.