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Alternative Market Briefing

Investors allocate to Alternative UCITS funds to de-risk and diversify portfolios

Wednesday, September 19, 2018

Laxman Pai, Opalesque Asia:

Since beginning of the year, investors have allocated an extra 5% to Alternative UCITS funds in order to de-risk and diversify their portfolios, says a press release from LuxHedge.

"Emerging market turmoil, Brexit uncertainties and political struggles in Europe, risk aversion is clearly rising in 2018, against the backdrop of trade tensions," it says. The asset inflow has not been evenly distributed across strategies through and it is particularly insightful to have a deeper look at which categories are currently popular.

Under the current market circumstances, maulti-asset alternative strategies attract most capital. discretionary macro managers (global macro + EM macro) were able to increase their assets by a whopping +40% since beginning of the year.

Also multi asset absolute return funds gained +20%. Within systematic multi-asset strategies, alternative risk premia UCITS continue their steep upward path and attracted 36% of fresh capital in the past 8 months.

Within equity hedge strategies, investors clearly prefer being completely hedged via market neutral solutions. Where equity long/short strategies increased their AUM with +5% (in line with the global alternative UCITS market), equity market neutral funds have seen their assets under management rise by +10%.

LuxHedge Global Alternative UCITS Index

Meanwhile, close to 60% of Alternative UCITS funds posted losses in August, pushing broad based......................

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