Ucits – the right shape for a fund?

Over the past two decades or so, Ucits has become the default fund format for cross-border funds. Since the UCITS IV directive opened up the alternative space for Ucits funds in 2009, the format has become even more ubiquitous. Its dominance has even gone as far that many fund selectors have narrowed down their selection universe to Ucits-only. But is this a sensible way to go?

Alternative Ucits – better than hedge funds?

Demand for liquid funds with a mandate to invest in derivative strategies appears insatiable in Europe, with net fund flows having exceeded €7bn each month since February. And a convincing majority of fund buyers wants to continue adding to their absolute return holdings, according to EIE’s latest data. But do these so-called alternative Ucits funds actually live up to their task of delivering uncorrelated returns? Or are investors better off buying their illiquid and more expensive cousins, offshore hedge funds?

Part of the Bonhill Group.