Alternative UCITS Funds Exceed €100 Billion

Alternative UCITS funds have continued growing in the second quarter of 2013, with AuM up by 8.3% from €96.6 billion in March 2013, to €104.6 billion, according to the Alceda Quarterly UCITS Review.

Performance across the UCITS fund sector varied significantly, with investors focusing their assets on large, blue-chip funds. However, several funds launched in Q1 were able to grow their assets over the second quarter. Daily dealing funds have proved most popular with investors, attracting 83% of assets.

Different strategy indices revealed different results. According to the Absolute Hedge Global UCITS Index, the sector declined 0.53% in the second quarter, with losses concentrated in June, across a range of funds and strategies. The Market Neutral index performed the strongest with 1.45% growth. The Credit Index was also positive, with 0.13% returns; Equity Long Short grew AuM by 12% and registered 0.38% returns. However, Managed Futures, despite registering positive in the
first quarter, was down 3.79% over the second quarter with a 14.3% reduction in AuM.

In an analysis of UCITS fee structures, the report found that investors are moving assets into low-fee products. They are also showing more interest in funds without performance fees: while 62% of alternative UCITS funds have adopted the 20% performance fee model, these funds have only attracted 31% of overall assets.