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Alternative Ucits AuM reach all-time highs
31 July 2014
Record set despite alternative Ucits strategies advancing just 0.52% in H1 2014
Alceda Fund Management
Assets under management (AuM) in alternative Ucits have grown
by 15.6% to €184.2bn ($250bn) since the end of 2013, a new
record high, according to a new report by Alceda, driven by new
This comes despite the fact that alternative Ucits strategies
performed less well during the first half of 2014, advancing
just 0.52%, compared to the 5.95% gains seen in the same period
"Investment flexibility, demand for absolute return solutions
and profound changes in the hedge fund industry and supportive
regulatory framework are driving this expansion over the long
term," said Michael Sanders, CEO and chairman of the board at
Alceda Fund Management.
Having ended 2013 as the best performing strategy with 12.3%
gains, the AH Equity Long Short Index was flat to the end of
June 2014, underperforming most long-only equity indices. Yet
equity long-short strategies have seen AuM rise 66.8% to
€30.7bn since the end of last year.
Similarly event-driven strategies have seen AuM increase 88.2%
to €3.2bn over the period, as global merger and
acquisition volumes increase.
"April was a particularly difficult month for equity long-short
managers, as despite relatively nominal moves at the index
level, there were significant underlying style rotations and
unwinding of consensus positions which hurt active managers,"
"There is also an issue of capacity which is most acute in
equity long-short where 48% of AuM is currently invested in
Strong performance in equity and bond markets, both up by 4% in
the first half of the year, contributed to multi-asset
strategies being the best performing alternative Ucits strategy
year to date, with 3.52% gains in line with its strong
performance in 2013.
Managed futures was the only strategy to lose assets, declining
6.7% in H1 2014. However, performance has generally improved
after a challenging few years.
A total of 16 new Ucits funds were launched across all
strategies during the first half of 2014.