Hedge fund products dominate closed-ended issuance

Hedge fund products now represent AIC's fourth largest investment company sector with £6.6bn in assets, accounting for a quarter of 2007 issues

Hedge funds have become one of the fastest growing AIC sectors in recent years, accounting for a quarter of new issues in 2007. The association's fourth largest sector, mainly made up of fund of funds offerings, now has more than £6.6bn in assets. Over 12 months to the end of March, AIC figures show the vehicles have performed well in absolute terms, up 8% compared to a 9% fall in the wider closed-ended universe. Managers suggest the credit crunch has created increased buying opportunities, positioning the sector well for long-term absolute returns. Anthony Culligan, manager of F&C ...