A critique on UCITS will be delivered at the annual GAIM hedge fund conference in Monaco tomorrow.

David Miller, partner at investment firm Cheviot Asset Management, believes that low risk UCITS are not what investors need at this moment in time.

“A lot of marketing is pitching UCITS as a low risk way into hedge funds,” he said.

“However, this is really not what investors need and with inflation at a higher level than forecast, investors in many UCITS funds are actually suffering a decline in the real value of their wealth.”

Miller said fund managers need to be more ambitious about performance, and must focus on real returns after inflation.

The cost of UCITS will also be discussed, with Miller set to argue that UCITS can be more expensive than the headline number because of extras such as higher prime brokerage fees and marketing costs.

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