Ucits VI threatens derivatives in alternatives funds, says Candriam

Sixth iteration of directive could pose danger to portfolio risk management

Fabrice Cuchet, Candriam

It has been mooted that the European Commission may place restrictions on the eligibility of assets, particularly derivatives, through Ucits VI, such as whether their use should be limited to instruments traded on platform and centrally cleared.

Candriam, which won this year's Hedge Funds Review award for best fixed income hedge fund for its Bonds Total Return fund of funds, launched its first alternative Ucits fund in 1996. With offices in France, Belgium and Luxembourg investing in traditional