The latest quarterly research on the Ucits hedge funds industry published by Alix Capital reveals a 7.5 per cent increase in the total assets managed by Ucits hedge funds to EUR129bn, an increase of 18.3 per cent over the last 12 months.
Louis Zanolin, chief executive of Alix Capital, says: “As predicted, we have continued to see a growth in the total assets managed by UCITS hedge funds in the second quarter of 2012 and this is a trend which we expect to continue for the remainder of the year. Investors are attracted by Ucits funds for bringing an increased investment choice which is reflected in the rise in the number of fund launches in Q2. Moreover, the need for transparency, liquidity and regulatory oversight that Ucits funds provide is another significant reason for the growth of this industry which has seen substantial inflows in the last three years.”
The strategies that witnessed the strongest assets growth are CTA (+26 per cent) and macro (+17 per cent).
Sixteen new funds were launched the quarter and four were closed, increasing the global number of funds from 764 at the end of March 2012 to 776 at the end of June 2012.
The 20 largest single manager funds now account for EUR64.9bn assets under management or 50.2 per cent of total assets. The portion of funds with more than EUR100m continues to rise and now represent 34.3 per cent of all single funds.
Since the beginning of the year, 50.27 per cent of all single Ucits hedge funds display positive performance with the best performing Ucits hedge funds being the Renaissance Ottoman Fund (emerging market) up 21.48 per cent, followed by the Credit Suisse Global Carry Selector Fund (volatility) up 20.32 per cent and Thames River Global High Yield Bond (fixed income) up 18.90 per cent.
In the funds of Ucits hedge funds space the top performer is the Goldman Sachs Dynamic Alternative Strategies up 2.28 per cent since the beginning of the year. Two new funds of Ucits hedge funds were launched in the second quarter bringing the total to 78. The level of assets under management has remained stable just above EUR3bn. Credit Suisse Asset Management is the largest funds of Ucits hedge funds manager with EUR483m.
Compared to Q1, the three largest strategies remain the same: fixed income, long/short equity and macro with EUR40.6bn, EUR22.2bn and EUR18.8bn respectively. These three strategies are also the largest in terms of number of funds with 217 long/short equity funds, 141 macro funds and 95 fixed income funds.