Thursday, 21 August 2014
Last updated 43 min ago
Jan 30 2013 | 9:20am ET
Fixed-income was the most popular UCITS hedge fund strategy in 2012, according to Alix Capital.
The firm's latest quarterly European research shows fixed-income funds attracted 56% (€13.2 billion) of all inflows into the UCITS hedge funds last year—including €4.7 billion in Q4 alone.
Macro strategies ranked a distant second, attracting 24.7% (€5.8 billion) of total UCITS inflows in 2012.
Overall, UCITS hedge funds saw their assets under management rise 20% in 2012 to a new-high of €140 billion.
Emerging markets were the best-performing UCITS strategies last year, returning 5.38%, followed by long/short equity, returning 4.88%. Commodities funds were the worst performers, down 5.44% in 2012.
The three largest single-strategy managers by AUM were Standard Life Investments, with €17.4 billion (up 59.8% on the year); GAM, with €12.5 billion (up 41.2%); and M&G’s with €10.8 billion, double its 2011 total.
Three funds returned more than 30% in 2012, 22 returned more than 20% and 84 achieved a performance above 10%.
Said Louis Zanolin, CEO of Alix Capital, in a statement: “Despite the current economic environment, the total assets managed in UCITS hedge funds continued to grow at a stronger rate than the rest of the hedge funds universe.
In 2012 the five largest fixed-income funds attracted 55% of total inflows into the UCITS hedge funds sector across all strategies, and 90% of the inflows into fixed-income strategies. This can be attributed to performance—some of these large funds achieved the best results in 2012, for example M&G Optimal Income—but also to investors’ preference for blue chip names, especially true for new investors coming from the long only space.”
Despite a bad year in terms of performance for funds of hedge funds in general, some witnessed strong growth. Credit Suisse Asset Management attracted €258 million in new inflows for its two funds bringing its AUM to €606 million, up 74.0% on the year.
UCITS hedge funds platforms offered 100 single-manager funds managing a total of €9.6 billion last year. Deutsche Bank DB Platinum was the largest platform in terms of AUM with €2.01 billion or 21.2% of the market.
Luxembourg, France and Ireland are the most popular domiciles for UCITS hedge funds with 46.1%, 18.1% and 16.7% market share respectively.
Alix reviewed the performance of 802 single-manager alternative UCITS funds and 80 alternative UCITS funds of funds as well as UCITS hedge fund platforms analysis.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note