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Alternative UCITS inflows rise in Q2
31 July 2013
Fixed income dominates investor inflows, says MondoAlternative
Alternative Ucits inflows rose by over €7bn ($9.3bn) over Q2, to stand at over €103bn, according to Italian investment analysts MondoAlternative.
The firm said total Ucits assets under management across Europe stood at €103.7bn at the end of the quarter, up from €96.1bn at end of March 2013, with single managers seeing inflows of €6bn and fund of fund assets increasing by €137m.
By far the largest increases were seen in fixed income, with inflows of €3.9bn in the quarter.
MondoAlternative said fixed income had increased by €8.7bn in the first half of the year, far outstripping the next two most popular strategies - multi strategy UCITS, which saw inflows of €1.6bn, and long/short equity, which grew by €1.4bn.
In total, fixed income Ucits assets stood at €29.7bn, while long/short equity assets amounted to €13.4bn and multi strategy assets were €8.8bn.
Stefano Gaspari, CEO, MondoAlternative, said: “Despite a difficult environment in second quarter of 2013, especially in June, alternative Ucits funds continue to attract investors due to their absolute return objectives.
The biggest contributors to the growth are a bunch of products, mainly in the Fixed income space, where investors can find something different from a long only exposure to the asset class, that is suspected to be at the end of a thirty years bull market”.
MondoAlternative said new fund launches had slowed down, with 13 new funds launched in the quarter and 24 liquidated. The firm said the majority of liquidations were as a result of either low levels of assets or poor performance.
Gaspari said: “The industry is growing, and the big funds are growing at a faster pace: the number of investment houses managing over €1bn in EU-regulated mutual hedge funds, has grown to 23 for a total of 70 Euro billion under management, the 67.7% of the entire industry”.
MondoAlternative also found that Ucits managers are overwhelmingly European, with a 94.1% share of the market.