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Substantial flows expected for global macro hedge funds and CTAs

Friday, February 06, 2015
Opalesque Industry Update, for New Managers - ML Capital Asset Management, the investment manager and promoter of the MontLake UCITS Platform, is delighted to present the 17th edition of the quarterly ML Capital Alternative UCITS Barometer.

The Barometer is designed to help identify and anticipate key trends in the demand for the major strategies within the Alternative UCITS sector. The capital introductory team at ML Capital surveyed a diverse range of 60 investors who collectively manage almost $600 billion and today invest upwards of $65 billion into Alternative UCITS, reflecting the widening of the investor base for regulated alternative products in Europe. Respondents range from insurance and pension funds to private banking organisations, with a significant constituent of financial advisers that deal with the primary source of Alternative UCITS inflows, the mid-net-worth investor.

Major Findings;
* Global Macro and CTAs in High Demand - This quarters Barometer has identified that investors are on the lookout for Global Macro and CTA strategies, in a search for uncorrelated returns and downside protection. Demand levels have exploded since the last quarter with 70% of respondents searching for new managers across both sectors.

* Emerging Markets Back in Strong Demand - We are seeing heavy demand for Global Emerging Markets strategies this quarter, with over 50% of respondents planning to raise their allocations to the space. There is also a strong level of demand shown for new allocations to Asian focused funds, with an almost fivefold increase in projected inflows this quarter.

* Europe Continues to Attract Investor Interest - Despite ongoing structural concerns in the Eurozone, investor appetite continues to climb for European Long Short Equity funds, with 58% of allocators planning to increase their exposure. This is a positive sign for the space and clearly indicates that of those investors surveyed, there is a consensus that the region offers the opportunity of good returns.

PD

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