UCITS fund of funds: An industry at a crossroads?
Wed Apr 18, 2012
Joy Dunbar, Editor of Absolute UCITS, explores the state of the UCITS fund of fund sector
Worldwide assets in alternative UCITS fund of funds
increased marginally in 2011, according to new research from
the Absolute UCITS research and data team.
In an extremely difficult year for the industry –
which was triggered by the escalating Eurozone economic and
financial crisis – difficulties with performance
clearly took a heavy toll on investor confidence.
This resulted in assets under management increasing by only
around $500 million during the year and the number of funds
increased by just two to reach 50.
Following a difficult period, which started in August 2011
when the US was downgraded by a credit ratings agency which
resulted in much ensuing market volatility, around 11 UCITS
fund of funds were liquidated – some within only a
year of launch. Most funds in the sector, like most underlying
funds, were down.
Returns of UCITS fund of funds have hence not been very
attractive in the past...
ISSN: 2151-1845 / CDC10004H
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