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MondoAlternative: Alternative UCITS saw inflows of more than Eur6bn in 2Q 2013

Wednesday, July 31, 2013
Opalesque Industry Update - Main findings:

• Alternative UCITS inflows in 2Q 2013: +6 Euro billion, Single managers; +137 Euro million, Fund of funds
• 103.7 Euro billion of total assets under management monitored, up from 96.1 Euro billion at end of March 2013;
• Fixed income is still the largest contributor to the growth of the sector: +3.9 Euro billion of inflows in 2Q 2013 (+8.7 billion in 2013 until June, see chart 1).

Flows into alternative single manager UCITS funds in 2013, end of June.


Data in Euro millions. Source: MondoAlternative.
Chart 1

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


Source: MondoAlternative. A global asset manager is defined as a company managing hedge funds and other types of investments; a hedge fund boutique is a company managing exclusilvely hedge fund strategies.
Chart 2

“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”.

Exclusive survey
According to a survey made by the MondoAlternative Research Department over 53 companies managing over 28.5 Euro billions in alternative Ucits, investors into alternative UCITS are mainly European: to be precise, according to the data of the sample, the percentage stands at 94.1%. Marginal units are headed to the North American clients (1.9%), Asian (1.2%) and Latin American (0.8%). According to the survey and looking in detail at the individual European countries, the relative majority of subscribers is up to the ones of the United Kingdom (20.1% of the total), followed by Italians (19.8%), the Swiss (17.6% ), Germans (16.5%), the French (12.3%), Spanish (3.9%), the Benelux countries (3.6%) and those of Scandinavia (2.1%).

Geographic distribution of alternative UCITS funds clients in Europe


Data based on answers given by 53 asset management companies for a total of more than Euro 28,6 billion in alternative UCITS funds. Source: MondoAlternative.
Chart 3

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.
• In Italy, 21 Asset management companies manage 35 single manager products and 8 funds of alternative UCITS funds, for a total AUM equal to 3.7 Euro billion, registering a growth of 300 Euro million in the second quarter of 2013.
• Anima Star Europa Alto Potenziale (Long/short equity) is the biggest single manager fund with 394 Euro million, followed by Anima Star High Potential Europe (367.8 Euro million, Long/short equity) and Kairos International Sicav Selection (336.2 Euro million, Long/short equity).
• Anima Flex 50 leads the Fund of funds ranking by AUM, with 362.9 Euro million, followed by Kairos International Sicav Multi Strategy Ucits (124.6 Euro million) and Tages Capital Sicav Global Alpha Selection (72.4 Euro million).
• According to an exclusive survey by MondoAlternative, in Italy 52.0% of the capital raised by alternative UCITS products comes from the financial intermediaries, followed by direct institutional investors (32%), direct retail investors that account for 14.8% and seed money. Going deeper into the Italian clients of the financial intermediaries, it can be notice that a share of 57.6% of AUM comes from private investors and the remaining 42.4% from institutions. Consequently, the Italian market is dominated by institutional investors (54%), whereas retail investors stand at 44.7% and seed money remain at 1.3%

Where do the Italian assets of alternative UCITS funds come from?


* Inflows generated thanks to agreements with private banking networks, asset management companies, etc. Data based on answers given by 53 asset management companies for a total of more than Euro 28,6 billion in alternative UCITS funds. Source: MondoAlternative.
Chart 4

Other findings of the report
• Fixed income (29.7 Euro billion), Long/short equity (13.4 Euro billion) and Multistrategy (8.8 Euro billion) are still the top three strategies by assets managed;
• +5.2 Euro billion daily funds, +0.8 Euro billion weekly funds, -6 Euro million fortnightly funds;
• +208 Euro million for hedge fund boutiques, +5.7 Euro billion for global asset managers;
• -0.64% performance (Equal Weighted Index) in 2Q 2013 for single managers, (-0.95% Asset weighted Index), YTD performance at +0.79% (Equal Weighted Index), during the same period 3 months Libor performed +0.06%;
• -0.96% performance (Equal Weighted Index) in 2Q 2013 for funds of funds, (-1.18% Asset weighted Index).

Press release

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 – info@mondoalternative.com – www.mondoalternative.com

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