Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Up arrow

14277

Alternative UCITS finish 2013 on a strong note, says Alceda

RELATED TOPICS​

In Q4 2013 the alternative UCITS sector grew by 21 per cent compared to Q4 2012, showing continued demand and investment in alternative strategies, according to the Alceda Quarterly UCITS Review.

Strong equity markets, rallying into the year end, supported the demand for alternative UCITS strategies and drove the Q4 performance up 2.7 per cent, bringing year to date gains to six per cent.
 
Tracking the Absolute Hedge Alternative UCITS Index, which encompasses 468 funds, assets under management (AUM) reached a total of EUR159.4bn, an increase in AUM of 3.2 per cent on the previous quarter.
 
As equity markets continued their strong performance in the last quarter of the year, the AH Equity Long Short Index kept its position as the top performing strategy in the year with a 12.3 per cent increase over 2013, following the 4.3 per cent uplift in Q4 2013. In addition, AUM within Equity Long Short reached EUR 18.4bn, registering a 17.2 per cent increase over the quarter. FX strategies were hard hit with both gains and assets declining 15.4 per cent and 33.3 per cent, respectively, in Q4 2013, leading to an overall decline in performance of 1.3 per cent in 2013.
 
Managed Futures funds, which declined 2.4 per cent in Q3 2013, rebounded in the last quarter adding 6.1 per cent, making it the best performing category in the quarter; however AUM declined 3.2 per cent over the quarter showing the strategy is still facing some challenges.
 
Macro funds control the largest share of total AUM with EUR 42.4 billion invested, with assets growing by 6 per cent over Q4 2013. The AH Macro Index advanced 1.4 per cent in Q4 2013 and 2.3 per cent over the year.
 
Q4 2013 was a particularly active quarter with regards new alternative UCITS launches, with 17 new funds across strategies coming to market, primarily within the Equity Long Short and Credit Indices. The AH Credit Index ended the year with gains up 3.37 per cent (+1.23 per cent in Q4 2013) as investors reacted to the dislocation of bond markets. In line the new issues across strategies, the report reveals that investors are increasingly happy to support new products with new funds achieving significantly higher launch assets, often within their first year.
 
Michael Sanders, chairman of the board, Alceda Fund Management SA, says: “The results of the Alceda UCITS Review in Q4 2013, and over the full year, demonstrate the growing investor confidence in the global economic recovery and the continued demand for alternative UCITS strategies.
 
“While the overall results were encouraging, there was a significant dispersion in performance between the best and worst performing funds in the space. Equity Long Short, the strongest performing category over the year, outperformed FX strategies by over 60 per cent, demonstrating the importance of good fund selection and portfolio diversification. Assuming equity markets continue to rally, we expect Equity Long Short funds to benefit and maintain their levels of performance.
 
“The universe saw assets under management grow by over EUR25bn over 2013, translating to a growth rate of 21 per cent. With investor confidence growing, and more funds being driven into alternative UCITS strategies, as well as a supportive regulatory environment, we expect this positive trend to continue into 2014.”

Latest News

EFAMA has commented on today’s vote by the European Parliament in favour of a new..
Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins..

Related Articles

Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by