23 Jan 2012
Long/short equity is the most popular strategy pursued by alternative UCITS funds, according to a report by PerTrac.
The 30-page report entitled, “The Coming of Age of Alternative UCITS Funds”, also revealed that funds that invested in emerging markets have posted the best performance from January 2002 until October 2011. Smaller funds outperform larger ones, based on a comparison of equal-weighted and asset-weighted cumulative return of PerTrac’s alternative UCITS fund index.
The PerTrac study found that over a quarter of the 1,210 alternative UCITS funds included in the study pursued long/short equity strategies. Global macro, managed futures and multi-strategy each made up over 11%of the funds. Just under 11% of the funds followed a fixed-income approach.
A little more than 80% of alternative UCITS funds are domiciled in three countries; Luxembourg (49.92%), Ireland (18.84%), and France (11.90%), according to the report.
Following the study, PerTrac state that, overall, growth in alternative UCITS funds’ assets under management has been strong, but marked by peaks and valleys since the European Parliament and the Council of 21 January 2002 first granted UCITS funds greater freedom to follow alternative strategies. AUM growth of alternative UCITS funds has increased from €5.40 billion in January 2002 to nearly €150 billion as of October 2011.
The 30-page report entitled, “The Coming of Age of Alternative UCITS Funds”, also revealed that funds that invested in emerging markets have posted the best performance from January 2002 until October 2011. Smaller funds outperform larger ones, based on a comparison of equal-weighted and asset-weighted cumulative return of PerTrac’s alternative UCITS fund index.
The PerTrac study found that over a quarter of the 1,210 alternative UCITS funds included in the study pursued long/short equity strategies. Global macro, managed futures and multi-strategy each made up over 11%of the funds. Just under 11% of the funds followed a fixed-income approach.
A little more than 80% of alternative UCITS funds are domiciled in three countries; Luxembourg (49.92%), Ireland (18.84%), and France (11.90%), according to the report.
“This study indicates that alternative UCITS funds are becoming more mainstream,” said Lisa Corvese, managing director of global strategy at PerTrac. “The turbulence of the last few years has compelled investors to seek out alternative investments with greater transparency, liquidity and risk controls. Based on a robust AUM growth since 2009, it would appear that alternative UCITS funds have increasingly become a solution of choice.”
Following the study, PerTrac state that, overall, growth in alternative UCITS funds’ assets under management has been strong, but marked by peaks and valleys since the European Parliament and the Council of 21 January 2002 first granted UCITS funds greater freedom to follow alternative strategies. AUM growth of alternative UCITS funds has increased from €5.40 billion in January 2002 to nearly €150 billion as of October 2011.
