Absolute return UCITS funds are growing exponentially with assets under management tripling during 2010, according to information provider Absolute UCITS.
Assets under management in single-manager absolute return UCITS funds stood at $30.3 billion at the end of 31 December 2009, and increased by 198% to $90.5 billion at the end of last year.
The growth of assets under management comes both from hedge funds launching onshore UCITS products and traditional long-only asset managers using absolute return strategies structured as UCITS. Additionally, $9.5 billion was raised globally in 2010 from 129 new fund launches.
“The development of absolute return UCITS funds has been incredible,” said Joy Dunbar, editor of Absolute UCITS. “So far the sector is showing the same signs of growth as the offshore European industry in the early part of the last decade. Our research also suggests that this is set to continue well into the next decade.”
To date, the UK has more than half of global absolute return UCITS, at $48.3 billion, and half of the managers as well – mainly located in London.
Three quarters of absolute return UCITS funds are standalone funds (without any offshore hedge fund counterpart) with the rest being offshore clones.