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Alternative Market Briefing

Alternative UCITS investors flock to defensive strategies

Wednesday, July 18, 2012

Beverly Chandler, Opalesque London: Maltese-headquartered ML Capital has published the latest edition of its survey of users of alternative UCITS, and found that investors are taking a defensive stance, with a significant redirection of assets towards Fixed Income, Global Macro and Market Neutral Strategies.

ML Capital surveyed a diverse range of 51 active investors in alternative investments, who collectively manage over €100bn ($122bn) and invest upwards of €62bn ($76bn) of those assets into alternative UCITS. The survey asked what investors’ allocations were likely to be in the next quarter, in order to track asset flows between UCITS strategies.

Commenting on the latest survey, John Lowry, Chairman of ML Capital; "With the ongoing difficult market conditions, alternative UCITS investors are seeking the relative safe havens of strategies that offer greater perceived protection, including global macro, market neutral and especially Fixed Income strategies. All of these strategies are relatively under supplied at present in UCITS format and this represents a major opportunity for teams experienced in these sectors to raise significant AUM." The survey found that this quarter investors appeared very reluctant to make strong bets and are planning to reduce their exposures to directional strategies with most of the key Equity long- short strategies seeing a significant drop off in demand for this quarter.

The surv......................

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