AuM in alternative UCITS exceeds 300 billion Euro

Alternative UCITS funds attract high demand from investors. Absolut Research reports that the 970 alternative funds analysed by them have passed the mark of 300 billion Euro in assets under management in October. This is an increase of six percent against the previous month and of 29 percent since the beginning of the year.

The demand for these alternative UCITS funds, says Absolute Research in a press release, is also due to the robustness of them in times of crises. In comparison to European shares, correlating long/short-strategies have lost much less money in critical market times such as the year 2008, 2011, 2012 as well as during the summer 2015. 

The biggest funds have performanced much better than the small and medium ones. Those funds have as well gained the most money form investors as they profit most from the trend towards “liquid alternatives”, says Absolute Research. 

“The development of empirical capital market research, better data and enhanced opportunities on the derivative market, improved risk models as well as falling trading costs have opened up investments that were previously only available to large institutional investors and hedge funds,” says Ulf Füllgraf, managing director and CIO at the Hamburg-based Investment-Boutique Alpha Centauri, just recently about “liquide alternative risk premia” in his German guest article on altii.

The demand for alternative UCITS is a trend that could be observed for longer. At the beginning of the year, Alceda has published a report stating that alternative UCITS strategies increased their assets under management during the year 2014 by 41 percent to 224.3 billion Euro.

“The popularity is not surprising as UCITS instruments target some aspects that investors have worried about after the 2008 financial crisis such as liquidity, regulation, custody of assets, transparency and risk management,” said Oliver Wiedemeijer, Direktor at Credit Suisse, last year in an interview (German language) with Hedgework on altii.