2012 was a promising start for alternative UCITS funds with the UCITS Alternative Index Global gaining 1.37 per cent having fallen 3.64 per cent in 2011. All strategies posted positive returns, the strongest being Emerging Markets which gained an impressive 4.04 per cent: a welcome recovery given that the UCITS Alternative Index Emerging Markets ended 2011 down 10.6 per cent. Macro (1.70 per cent) and Long/Short Equity (1.69 per cent) also did well, although in contrast, the UCITS Alternative Index Volatility – a new index introduced by Alix Capital in January this year – made only slight gains of 0.02 per cent. CTAs also lagged, gaining just 0.23 per cent. Total AUM for UCITS hedge funds increased to more than EUR116billion according to Alix Capital. As of end-January 2012, the UCITS Alternative Index was composed of more than 820 hedge funds and FoHFs.