UK - Eleven out of 13 hedge funds fell short of their long-term performance targets in July, latest performance figures from the Edhec hedge fund indices reveal.
The figures show that all alternative investment strategies, except short selling and fixed income arbitrage, posted below long-term average returns in July, with most ending the month with negative returns.
Among the worst performers were long/short equity funds, which posted returns of -1.4%.
The best performance came from short selling funds, which reported returns of 5.9% thanks to the marketís decline.
Mercer Investment Consul-ting senior investment consultant Ralph Frank warned that hedge funds should not be seen as a one-way ticket to positive returns.
He said: “The term ‘hedge’ originally related to the reduction/elimination of market exposure, but the reality is that it is almost impossible to remove market exposure, completely and people need to be aware of that.”
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.
This week's top stories included coverage of the much-anticipated defined benefit (DB) white paper and the sector's reaction.