Tue, Feb 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Alix Capital survey finds consultants behind the curve on UCITS hedge funds

Tuesday, March 05, 2013
Opalesque Industry Update - Alix Capital, the Geneva-based provider of the UCITS Alternatives Index (UAI) family of indices, has published its latest UCITS Alternative Index Trends Survey on the state of the UCITS hedge funds industry. The survey examines institutional investors’ attitudes to the sector, and showed that 38% of respondents believe that investment consultants are behind the curve when it comes to advising their clients on this sector.

The survey also reveals a significant shift in allocation intentions. For the first time since summer 2011, respondents plan to decrease their allocation to fixed income and increase allocation to equity long short strategies.

Key findings include:

  • UCITS hedge funds assets under management are expected to continue to grow in the next six months, with 69% per cent of respondents expecting to increase their allocation in 2013.
  • Long/short equity is likely to be the most popular strategy in the next six months, with 48% of respondents intending to increase their allocation. Emerging markets and event-driven are the next most popular strategies with at least 35% of respondents intending to increase their allocation.
  • 36% of respondents plan to decrease their exposure to fixed income.
    Private banks are expected to be the main buyers of alternative UCITS products, followed closely by pension funds.
  • Respondents agreed that UCITS alternative funds appeal to institutional investors as they provide access to absolute return strategies in a regulated, transparent and a liquid manner.
  • In terms of drawbacks, participants point out that the level of investment constraints and fees may not be suited to sophisticated investors.
  • Over half of respondents believe that performance needs to improved for institutional investors to increase their allocation.

Louis Zanolin, CEO of Alix Capital, says: “While the majority of institutional investors understand the advantages that UCITS hedge funds can offer them, especially in regards to liquidity, transparency and regulation, there are still many improvements that need to be made to improve the perception of UCITS as a competitive framework. Providers need to enhance communications with the investment consultant community to improve their understanding and awareness of the UCITS alternative space.

“Our survey has proved to be an effective indicator of future inflows, and I am encouraged to see almost 70% of respondents expecting an increase in allocation to UCITS in the first half of 2013. UCITS hedge funds assets have experienced steady growth, increasing by 16.4% in 2012 to reach a new high of EUR 143 billion, and respondents expect this trend to continue in 2013.”

The survey was conducted in December 2012. There were 52 participants including single fund and fund of funds managers investors (over 40% of respondents), banks, insurers, pension funds, high net worth individuals and service providers.

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. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  2. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  3. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  4. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  5. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d