Ucits hedge funds crossed an assets-under-management (AuM) threshold at the end of 2017, data shows.
The sector, which has thrived since 2007 as investors looked for more tightly regulated hedge fund strategies, saw AuM reach $321.2 billion (€260 billion), crossing $300 billion for the first time.
The ‘Eurekahedge Report – February 2018’ also shows that since the end of 2005, the Eurekahedge Ucits Hedge Fund Index generated 3.93% annually, falling behind returns from non-Ucits hedge funds, which returned 9.34% on average.
But they still outperformed the underlying equity market, as measured by the MSCI World Index return of 2.62% per annum.
The performance of Ucits hedge funds is affected by certain caveats and additional restrictions placed upon Ucits funds such as the level of leverage and the degree of liquidity, Eurekahedge says.
“Despite such limitations, Ucits hedge funds remain relevant with interest from investors as regulatory bodies continue to improve on the product with enhancements in order to remain up-to-date with changing market and investor demands,” the firm, which collates hedge fund data, said.
More than half of Ucits hedge funds on Eurekahedge’s database charge up to 1% management fees, while 27% of non-Ucits hedge funds charge no more than this figure.
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