Institutional Investors

Investors want lower volatility UCITS strategies, report says


Investors want lower volatility strategies together with the benefits associated with UCITS funds, according to a new report.

Researchers Strategic Insight, writers of the report Alternative and hedge fund UCITS through the next decade state that investors are consciously choosing UCITS with the clear knowledge of possibly giving up some performance.

The average tracking error between hedge funds and their onshore counterparts for all strategies is little more than 3%, recent research from HedgeFund Intelligence shows.

The 20-page report states: “But a performance tradeoff may not even be much of a worry, as recent analysis found no conclusive evidence that hedge funds outperformed alternative UCITS on a risk adjusted basis.

“Notwithstanding these and many other technical considerations, some