Industry Updates

Alix Capital launches global fixed income UCITS fund index

Wednesday, October 31, 2012

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Opalesque Industry Update - Alix Capital, the Geneva-based provider of the UCITS Alternatives Index family of indices, today announces the launch of a new investable index, the UAIX Fixed Income Global Index, comprised of fixed income UCITS funds investing in both emerging and developed markets.

The UAIX Fixed Income Global Index is made up of between 10 to 15 UCITS fixed income hedge funds, with a maximum allocation of 40% to emerging markets funds. The index has been constructed using a proprietary systematic model developed by Alix Capital with the aim of outperforming the UCITS Alternative Index. This addition increases the UAIX family of indices to 12 strategy specific UCITS hedge funds investable indices.

Louis Zanolin, CEO, Alix Capital says: “The UAIX Fixed Income Global Index is the second investable index we have launched for the increasingly popular fixed income market. This is in response to growing investor demand, as illustrated by our latest quarterly research, which showed that 33.7% of total AUMs in UCITs hedge funds are invested in fixed income strategies, with AUMs increasing 24.1% year to date and 11.4% in Q3 alone.

“For many investors emerging markets present the best opportunities in the fixed income space, but investing in long-only funds in this market can be volatile. This index will provide investors with up to a 40% exposure to emerging market fixed income. We believe this balance between developed and emerging market funds gives investors exposure to emerging market returns they are seeking, while managing the inherent volatility from investing in this sector.”

Alix Capital classifies UCITS fixed income funds as funds that invest both long and short in fixed income securities, with managers investing in fixed income or credit instruments (or a combination of the two) with either a market neutral or directional bias. The UCITS Fixed Income space is made of 112 funds totaling EUR 53 billion in AUM while the UCITS Fixed Income Emerging markets universe represents EUR 8 billion across 17 funds.

The UAIX indices may be licensed by financial institutions for the creation of index based financial products. Based on a proprietary proven methodology, the UAIX indices provide a cost effective and liquid solution for diversified and optimal exposure to regulated hedge funds.

A license is required from Alix Capital for any product linked to, or based on, the UAIX indices.

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