Tue, Sep 23, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali