Study Shows Long/Short Equity Most Popular UCITS Strategy

Jan 23 2012 | 10:46am ET

Over one quarter of the 1,210 alternative UCITS funds tracked by PerTrac employ long/short strategies and the best performers between January 2002 and October 2011 were those invested in emerging markets.

Those are some of the findings of a recent PerTrac study of the UCITS universe, titled “The Coming of Age of Alternative UCITS Funds.” The report also indicated that the second-most popular UCITS strategy was a tie between global macro, CTA/managed futures and multi-strategy, each of which accounted for over 11% of the funds.

Three countries domicile 80% of all UCITS funds: Luxembourg (49.92%), Ireland (18.84%) and France (11.90%).

In terms of performance, PerTrac’s Alternative UCITS Fund Index posted a cumulative 62% return from January 2002 to October 2011 on an equal-weighted basis (the average monthly returns of all alternative UCITS funds in each month cumulative), and 32% on an asset-weighted basis (which takes into account assets actually managed in each period).

As for assets under management, alternative UCITS funds have seen their AUM increase from €5.40 billion in January 2002 to nearly €150 billion as of October 2011. 

“This study indicates that alternative UCITS funds are becoming more mainstream,” said Lisa Corvese, managing director of global strategy at PerTrac. As the study observes, “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.”

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