UCITS investors polled by Alix Capital are keen on CTA, equity market neutral and volatility strategies and believe the industry is poised for growth in 2012.
Alix polled 45 respondents (62% fund investors, 24% fund managers, 7% service providers) for its most recent UAI Quarterly Industry Survey.
More than two thirds of respondents believe that global UCITS hedge funds assets under management will continue to grow in 2012 while over 70% believe that the UCITS hedge funds platform market share will continue to grow.
In terms of individual strategies, a full 58% of respondents plan to increase their CTA allocations in the coming quarter, continuing a trend seen in the past two quarters. Meanwhile, 48% of respondents plan to invest more in equity market neutral strategies, also following a trend seen in the past two quarters. Another 48% of respondents will up their allocations to volatility strategies, a category just added to Alix’s questionnaire.
For the first time since the summer of 2011, no strategy is displaying net redemption intentions. The strategy with the highest such intentions is fixed income, with 29% of respondents planning to reduce their allocations.
Asked about the possible effects of the European Union’s AIFM Directive governing alternative investments, 40% of respondents said it would have a positive impact on the growth of UCITS funds.
As for the advantages to investors of UCITS hedge funds, respondents listed infrastructure and counterparties, legal setup and risk management.