Downgrades for Investec and Fidelity in S&P's AA review

Asset allocation funds using Ucits III tools to increase alternative exposure outperformed their pee...

Asset allocation funds using Ucits III tools to increase alternative exposure outperformed their peers in the second half of 2007, according to Standard & Poor's. However, lead analyst Glenn Meyer said it would be dangerous to assume funds with this flexibility will do well in the future. In a review of the Cautious, Active and Balanced Managed sectors, Meyer found vehicles are slowly adopting Ucits III powers to gain exposure to areas such as agricultural commodities and funds of hedge funds. He said although use in the UK is increasing, it is still small in comparison to parts of Eu...