Thu, Nov 26, 2015
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


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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  4. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  5. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega