Alternative Ucits strategies break €100bn barrier, says Alceda

Alternative Ucits funds saw assets under management hit €104.6bn in the second quarter of 2013, according to figures published by the Alceda Quarterly Ucits Review.

Assets under management grew 8.3% through the quarter, with investors particularly focused on larger funds and those offering daily dealing, Alceda, the structuring specialist and Ucits platform provider said.

Investors are also looking for lower cost funds, the data suggest. Alceda said that 49% of funds by number charge a management fee of 0.5%-1% for institutional share classes. But, it said that these funds control some 74% of overall assets of alternative Ucits funds “showing investors moving assets into low-fee products.”

“Similarly, investors are showing more interest in funds without performance fees. While 62% of alternative Ucits funds have adopted the 20% performance fee model, these funds have only attracted 31% of overall assets.”

Regarding the performance of different sectors, the Market Neutral index gained 1.45% over the quarter. The Credit Index returned 0.13%. and Equity Long Short returned 0.38%.

The Managed Futures index lost 3.79%, while AUM in the strategy was down 14.3%, including one fund closure following concerns over commodity exposure and use of index swaps in light of regulatory guidelines, Alceda reported.

Michael Sanders, chairman of the Board at Alceda Fund Management, said: “With continued uncertainty in global markets, investors are looking to Alternative Ucits for diversifying strategies, increased transparency, less volatility in weak markets and improved liquidity. As a result, we have seen the Alternative Ucits sector demonstrating strong growth and investor interest, with total assets under management surpassing €100bn for the first time. As the sector continues to mature and funds continue to build on their track records, we believe that more investors will continue to enter this market.”


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