The record number of mergers and acquisition deals announced in 2015 hasn’t led to a sustained interest in merger arbitrage funds. Ucits-regulated M&A funds fell out of grace in the final months of the year, as they significantly underperformed their offshore peers.
Active managers are under fire from all sides. Regulators in the Nordic countries are leading the attack on closet trackers, and cheaper ETFs are eating market share. Fund selectors are looking on this favourably, though the asset management example is not followed by the wholesale sector in every European country.
There are two types of absolute return funds, and there are only 40 alternative Ucits funds to pass the hedge fund test. As a matter of fact, absolute return funds are far from a straightforward concept.
In part two of this interview, Niclas Hiller talks about the implications of being based in Norway, with its heavy reliance on oil-related industries, and how he is reacting to recent oil price weakness.
Niclas Hiller, chief investment officer of Formuesforvaltning in Norway, tells EIE’s Tjibbe Hoekstra how he is preparing for a sustained period of lower returns across all asset classes.