Opalesque Industry Update - Main findings:|
• Alternative UCITS inflows in 2Q 2013: +6 Euro billion, Single managers; +137 Euro million, Fund of funds
Flows into alternative single manager UCITS funds in 2013, end of June.
The growth of alternative UCITS funds keeps on: +6 Euro billion of fresh new money entered the segment. According to the new MondoAlternative quarterly report, daily funds gathered the most in the second quarter, +5.2 Euro billion, thus representing the 80.1% of the industry. Global asset managers (defined as companies managing hedge funds and other types of investments) continue to run, being responsible for over 5.7 Euro billion of inflows in the second quarter. Hedge fund boutiques (companies managing exclusively hedge fund strategies) also registered inflows in the first quarter (+208 Euro million). Their market share is stable at 18.3% (Global asset managers stand at 81.7%, see chart 2)
Stefano Gaspari, CEO at MondoAlternative says: “Despite a difficult environment in second quarter of 2013, especially in June, alternative UCITS funds continue to attract investors due to their absolute return objectives. The biggest contributors to the growth are a bunch of products, mainly in the Fixed income space, where investors can find something different from a long only exposure to the asset class, that is suspected to be at the end of a thirty years bull market”.
Alternative single manager UCITS funds: type of managers
“At the same time, during the second quarter of 2013 there was a slowdown in new funds launches. According to our data, 13 new funds were launched and 24 were liquidated, mainly due to poor performance or to a low level of assets. The industry is growing, and the big funds are growing at a faster pace: the number of investment houses managing over 1 Euro billion in EU regulated mutual hedge funds, has grown to 23 for a total of 70 Euro billion under management, the 67.7% of the entire industry”.
Geographic distribution of alternative UCITS funds clients in Europe
The clientele of alternative UCITS funds by type of investor shows in first position the direct institutional investors with 46.1%, followed by financial intermediaries (41.3%), that is the set of personal financial advisors and private bankers specialised in the placement of these specific products of the asset management industry. The share of direct private investors is 9.2% while the remaining 3.4% refers to seed money.
“The aggregate figures highlight the importance of financial intermediaries to channel assets to the alternative UCITS funds industry. However, it can be noticed that 60.1% of the money raised comes from private and 39.9% from institutional investors. Taking into account this breakdown, the institutional investors stand at 62.6% of total asset surveyed, retail clients account for 34.0% and seed money represent a marginal share of 3.4%”, research analysts observe.
The MondoAlternative survey results provide a broad picture about the type of institutional investors that invest in the alternative UCITS funds. Therefore, banks are the largest investor by far, with a share of 23.5% of the overall money invested in these products by the institutional clients, followed by wealth advisors (17.4%), pension funds (13.4%), funds of funds (13.3%), insurance companies (11.1%), family offices (7.2%), sovereign wealth funds (5.2%) and corporations (4.9%).
Focus on the Italian market
• At the end of June, of the 507 alternative UCITS funds monitored by MondoAlternative, 344 are authorized for sale in Italy.
Where do the Italian assets of alternative UCITS funds come from?
Other findings of the report
MondoAlternative, who has born from the ten-year experience of MondoHedge, is the first and only Italian multimedia provider of financial information entirely dedicated on alternative investments. Contact: Tel. +39 02 67339151 – firstname.lastname@example.org – www.mondoalternative.com