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.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.