The 'Alternative UCITS December 2018' special report comprises six separate articles listed below, these can be read individually or as a sequence.
The alternative UCITS environment remains a compelling option for institutional investors but there are signs that the strong annual AUM growth seen over the last five or six years has slowed in 2018. Investors have decided to exercise caution in 2018, holding back on allocations while they wait to see how the markets will fare. Combine this with poor performance, leading to natural compression of AUM, and the alternative UCITS sector has failed to ignite this year.
Back in February 2018, Goldman Sachs’ Securities Division, announced that it was partnering with Amundi with regards to its Luxembourgish funds based on the bank’s proprietary systematic strategy suite as well as to help support and expand its alternative UCITS offering. Amundi will take on the role as management company of the whole fund range and in addition become the investment manager for the proprietary systematic UCITS and SIF platforms.
The days of managers setting up new long-only large-cap US equity UCITS are largely gone, according to Philip Lovegrove, partner in law firm Matheson’s Asset Management Department. “Products are getting more complex and one of the manifestations of this is that for a number of years now, we have been seeing a lot of strategies and instruments that have traditionally belonged in the hedge fund world being brought into the UCITS world,” says Lovegrove.
Alternative UCITS funds experienced a 16 per cent growth in AUM in 2017, with total assets exceeding USD522 billion according to LuxHedge, an alternative UCITS index provider. Over that period, a record 248 new funds launched and the sense was that investor sentiment remained upbeat.
Lyxor Asset Management is one of Europe’s leading asset managers and has been expertly selecting hedge fund strategies since 1998. Lyxor has enjoyed great success since it started launching UCITS funds on its dedicated Alternative UCITS platform at the beginning of 2013.
For UK fund managers, distribution in a post-Brexit environment is very topical. It is one of the single biggest challenges that UK managers are grappling with, as well as managers based around the world who wish to do business in Europe.