Assets under management swelled 8.3% from €96.6bn at the end of Q1 to €104.6bn at the end of Q2, according to the Q2 2013 Alceda Quarterly Ucits Review.
Large, blue chip funds attracted the largest proportion of capital, although several funds launched in Q1 grew their assets over the second quarter. Daily dealing funds attracted the majority of assets, 83%, highlighting the importance of liquidity among investors.
Alternative credit strategies also proved popular among investors and attracted €3.4bn in assets, but managed futures saw a 14.3% drop in AUM over the period. One fund was closed during Q2 due to concerns about commodity exposure and the use of index swaps.
The research revealed 49% of funds charge a management fee of 0.50% – 1%, and these funds control 74% of overall sector assets. Just under two-thirds of funds charge a 20% performance fee, meanwhile, but these funds have attracted just 31% of total assets.
Michael Sanders, Chairman of the Board, Alceda Fund Management S.A. said: “With continued uncertainty in global markets, investors are looking to Alternative UCITS for diversifying strategies, increased transparency, less volatility in weak markets and improved liquidity.
“As a result, we have seen the Alternative UCITS sector demonstrating strong growth and investor interest, with total assets under management surpassing €100 billion for the first time. As the sector continues to mature and funds continue to build on their track records, we believe that more investors will continue to enter this market.”
Total Ucits sales also reached a record high in Q1 2013, find out how the money was allocated here.
