Ucits alternatives smash hedge fund 5-year returns

Ucits-compliant absolute return funds have returned over 2% to investors over the past five years while hedge funds lost money. The Ucits funds’ average return was 2.72% annually, whereas hedge funds lost an average of 0.46% per year. German asset manager Lupus Alpha carried out the research, examining 565 funds. Despite the strong showing for the Ucits-regulated funds, less than 30% of them posted positive results last year, largely due to high levels of European equity exposure. Performance varied widely across the universe, with some funds returning 20.56%, while others lost 23.63%. Overall, the Ucits absolute return funds posted average losses of 3.5%, compared to the average 5.63% loss delivered by hedge funds. Lupus also found the absolute return universe is largely comprised of small funds; 68% have assets under €250 million and 11% boast assets in excess of €1 billion. However, there is also a correlation between the size of a fund and the inflows it attracts, with the top 5% of funds by size receiving two thirds of new assets over the past year. ©2016 funds europe

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.


Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.


SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.


Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.