Survey: UCITS Investors Want CTA Strategies

Oct 24 2011 | 10:36am ET

The market for CTA strategies within the UCITS wrapper is growing, according to a recent survey from ML Capital.

The firm polled 51 investors who together manage €80 billion and invest upwards of €30 billion into Alternative UCITS strategies.

ML Capital says it observed a “dramatic increase in demand for CTAs” with 57% of respondents committed to the sector.

The survey found that the largest increase in allocations were to global macro systematic and CTA strategies, both of which saw demand almost double over the last quarter from 30% of polled investors to almost 60%.

Demand for developed equity market hedge strategies has declined noticeably since the beginning of 2011 and interest in event driven strategies has also been quite negative.

Interest in emerging markets funds, on the other hand, seems to be on the upswing, with 39% of respondents indicating a desire to move into global emerging markets UCITS funds.

The two least popular categories this quarter were UK long/short and distressed.

Said John Lowry, ML Capital co-founder and chair, “During this quarter, when respondents’ allocations to UCITS rose dramatically from €10 to €30 billion, the increase in market volatility has seen a big shift towards those strategies that offer the potential to make money, or at least protect a significant element of the markets’ risk.”

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