Wed, Apr 25, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Alternative UCITS assets grow by 375% in three years according to Alix Capital

Monday, April 30, 2012

Louis Zanolin
Opalesque Industry Update - Alix Capital, the Geneva-based provider of the UCITS Alternatives Index (UAI) family of indices, has published its latest quarterly research on the UCITS hedge funds industry. The report provides in-depth information on 764 single manager alternative UCITs funds and 76 alternative UCITs fund of funds, covering strategy breakdown, fund and advisor location, liquidity, asset flows, assets under management (AUM) and performance.

Louis Zanolin, CEO of Alix Capital, says: “The UCITS hedge funds industry has maintained its long term growth trend over the quarter and this will continue as investors increasingly require the transparency, liquidity and regulatory oversight that UCITS vehicles offer. Investors still want to allocate to alternatives in order to add alpha to their portfolios, but are looking for alternatives to offshore funds. We believe we will see a significant upswing in the popularity in UCITS hedge funds in coming years, and the regulatory environment will encourage more managers to launch UCITS products, enhancing the choice of products available to investors.”

Highlights of the report are summarised below:

UCITS hedge fund assets under management increased in Q1 from €113bn to €120bn (+6.2%). AUM have almost quadrupled in the last three years, in March 2009 assets stood at just €32bn. Around 72% of the progression in Q1 2012 is due to investor inflows, and 28% is due to fund performance.

The number of single manager funds was up +2.55% during the first quarter, and now stands at 764. This represents a 22.8% increase since March 2011, when there were 623 single manager funds. Fifty per cent of new launches were equity long/short funds, 15% equity market neutral, 10% macro and 10% volatility.

At the end of Q1 2012, the three largest asset managers in the alternative UCITS space were Standard Life Investments, followed by BNY Mellon and GAM. The total assets managed by these three firms were close to 30 billion EUR or 24% of the total assets managed in UCITS hedge funds. The 20 largest funds in the universe accounted for 46.3% of the total assets under management.

Fixed Income is the largest strategy in term of assets, accounting for EUR 36.4 billion or 32.3% of the total assets in single UCITS hedge funds. It is followed by Macro and Long/Short Equity with 15.84% and 15.20% respectively.

The UCITS hedge funds industry, as measured by the UAI Global index, delivered an average return of 2.25% over the quarter. With the exception of CTA (-0.99%), all strategies performed positively in the first quarter. The best performing sectors were emerging markets (+4.44%) followed by long/short equity (+2.49%) and event-driven (+2.17%). 83.2% of UCITS hedge funds offer daily liquidity, with 16.3% offering weekly and 0.4% bi-monthly. Geographically, Luxemburg, France and Ireland are the three most important domiciles for UCITS hedge funds with market share at 46.2%, 18.5% and 17.7% respectively (please see chart 3). Sixty seven per cent of new funds launched this year are domiciled in Luxemburg.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its