Institutions To Up UCITS Allocations In 2013

Mar 5 2013 | 9:18am ET

A full 69% of institutional investors polled by Alix Capital expect to increase their allocations to UCITS funds in 2013.

Alix polled 52 investors—including single fund and fund of funds managers investors (over 40% of respondents), banks, insurers, pension funds, high-net-worth individuals and service providers—in December 2012.

The survey revealed a significant shift in allocation intentions, with respondents planning to increase their investments in long/short equities, emerging markets and event-driven strategies while reducing (for the first time since summer 2011) their fixed-income investments.

Private banks are expected to be the main buyers of alternative UCITS products, followed closely by pension funds.

Investors polled told Alix felt the transparent, regulated and liquid nature of UCITS funds appealed to institutional investors although the constraints and fees associated with the funds might not suit more sophisticated investors.

Over half of respondents felt UCITS performance would have to improve to attract increased allocations from institutions.

Said Louis Zanolin, CEO of Alix Capital, in a statement: "While the majority of institutional investors understand the advantages that UCITS hedge funds can offer them, especially in regards to liquidity, transparency and regulation, there are still many improvements that need to be made to improve the perception of UCITS as a competitive framework. Providers need to enhance communications with the investment consultant community to improve their understanding and awareness of the UCITS alternative space.

"Our survey has proved to be an effective indicator of future inflows, therefore I am encouraged to see almost 70% of respondents expecting an increase in allocation to UCITS in the first half of 2013. UCITS hedge funds assets have experienced steady growth, increasing by 16.4% in 2012 to reach a new high of €143 billion, and respondents expect this trend to continue in 2013."


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.