Tracking the Absolute Hedge Global Ucits index, the number of alternative Ucits funds increased from 282 in the first quarter to 292 by the end of June 2012.
Looking at the launches, Michael Sanders, chairman of Alceda, suggests that the effects of weakened investor sentiment was evidenced by the three largest launches during the period being credit funds reflecting, as he says, “sustained demand for absolute return strategies in the sector”.
Looking at the indices, the best performing strategy in Q1 was equity long/short that was the worst performer in Q2 with a fall of 2.77%. Its place at the top of the year-to-date table was taken by FX with gains of 3.54%. Credit strategies are up 2.64%.
The volume of assets the 292 propositions hold now stands at €82.5bn, up by 7.4% since the end of March.
Year to date, their gains stand at 0.47%, down by 2.14% during the second quarter.
Sanders added: “While the performance of the Ucits sector declined over the quarter, year-to-date performance remains positive and we are continuing to see new fund introductions. We are also seeing a lack of regional specialist strategies which we believe is a function of investor demand for more broadly diversified global strategies post the financial crisis.”
