Opinion

Does LFG deal mark a new consolidation phase in the absolute return UCITS industry?

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The so-called Newcits industry already appears to be entering a consolidation phase

The move by the investment banking arm at UBS to buy out Luxembourg Financial Group for more than $36 million seems to show that the newly-arrived so-called Newcits industry already appears to be entering a consolidation phase.

The acquisition means that UBS is able to grow quicker in an industry which is predicted to grow to assets of $1.5 trillion in 2020, and compete on a more even footing with the other investment bank platforms like Bank of America Merrill Lynch and Deutsche Bank.

The LFG platform has a number of absolute return UCITS funds on its platform such