The proportion of retail investors opting for regulated hedge funds in the Ucits structure has almost doubled in the past year, as investors look for yield and downside protection in uncertain markets, according to new research.

According to research from Absolute Ucits, which tracks the industry of Ucits-compliant absolute return funds, the proportion of retail investors has increased from 22% at the end of June last year to 38% a year later. Assets in alternative Ucits funds held steady at $116bn during the period, the data provider said. Institutional investors account for the remaining assets.