Is the 2 and 20 fee structure a non-starter in the UCITS world?


COMMENT by Joy Dunbar, Editor of Absolute UCITS

It would appear that the now traditional 2% annual management and the 20% performance fees paid to hedge fund managers is a dying model in the fledgling world of alternative UCITS.

The changing dynamics within the industry is eroding the traditional fee model. The 615 funds (including liquidated funds) in the Absolute UCITS database highlights that there are 389 funds that have an annual management fee between 1% and 1.95%.

Some 95 funds have an annual management fee of less than 1%, 88 funds charge the traditional hedge fund standard of 2%, 33 charge more than 2% and one fund