EUROPE - Mellon Analytical Solutions says it will include statistics on pooled fund of hedge funds in its CAPS pooled pension fund survey.

The universe currently covers 20 multi strategy funds of hedge funds offered to UK pension schemes for investment. Their total asset value is in excess of £4bn.

Performance figures over one, three and five year-periods to May 31 2006 are provided and will be updated monthly. Furthermore, information on fees and the asset allocation of the funds is available.
 
"As the investment horizons of pension schemes broaden, it is a natural progression to include hedge funds in the CAPS Pooled Pension Fund Update," said Richard Slater, senior investment consultant at PricewaterhouseCoopers.

"The inclusion of these statistics in the industry benchmark publication will aid transparency and comparability of hedge funds."
 
Over the last 12 months the funds in the universe have achieved returns significantly ahead of cash and inflation.

The median fund returned 13.2% against 4.5% for cash and 3.0% for the Retail Price Index (RPI).
 
Blending different individual strategies with the aim of achieving more consistent investment returns with lower volatility than most individual hedge funds, multi-strategy funds of hedge funds are "generally seen as a more attractive option for pension schemes", according to Mellon Analytical Solutions.
 
Mellon Analytical Solutions provides performance measurement, attribution and investment analysis services to more than 2,600 institutional investors in 25 countries and has $6trn in assets under measurement.

Earlier this week it emerged that Mick Brant, managing director of Mellon Analytical Solutions International, is leaving to be replaced by Fraser Priestley.

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