- Advertisement -
- Advertisement -

Alternative UCITS attracting assets

Report: Systematic Strategies

- Advertisement -

Stockholm (HedgeNordic) The combination of hedge fund-like returns in a liquid and regulated form, which alternative UCITS funds describe continued to increase their popularity with investors during 2017.

According to the latest market overview from LuxHedge, total Assets under Management for that segment grew 16 percent EUR450 billion. The report further reveals that asset growth was nicely distributed across the different strategies with Equity Hedge Funds attracting 14 percent and Fixed Income Relative Value funds gaining 17 percent in assets. The largest asset growth was realised by Global Macro and CTA funds which both advanced 25 percent in 2017. 2017 also saw a record of 248 new fund launches, just falling short of one new fund launch every business day. Some 178 Alternative UCITS funds, however, were liquidated during 2017, bringing the total number of funds to 1429 at the year-end.

In line with the broader Hedge Fund market, performance for Alternative UCITS funds was solid in 2017 with close to 80 percent of funds the LuxHedge universe posting positive returns.  All broad strategy groups realised gains in 2017.

On the back of rising equity markets, performance was led by Equity Hedge strategies which generally kept a long bias to equity markets. Especially Asia proved to be the most fertile ground to find equity long/short trading opportunities with the LuxHedge Long/Short Asia incl. Japan UCITS index advancing 25.6 percent in 2017. In this bullish equity market environment, two out of three Equity Market Neutral funds posted a positive return and the LuxHedge Equity Market Neutral UCITS index gained 2.31 percent for the year.

With bonds and currencies at the mercy of central banks, many Global Macro funds struggled to add value during 2017. The performance was widespread with the worst funds returning -20 percent and the best funds returning close to 30 percent. Tracking the average fund, the LuxHedge Global Macro UCITS Index realised a modest gain of 1.16 percent in 2017.

The Nordic hedge fund universe, by comparison, measured by the Nordic Hedge Index (NHX), advanced by 3% in 2017, with fixed income strategies showing the strongest gains, up to an impressive 7.1% on the year.

 

Picture:  © olegatorshutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Kamran Ghalitschi
Kamran Ghalitschi
Kamran has been working in the financial industry since 1994 and has specialized on client relations and marketing. Having worked with retail clients in asset management and brokerage the first ten years of his career for major European banks, he joined a CTA / Managed Futures fund with 1,5 Billion USD under management where he was responsible for sales, client relations and operations in the BeNeLux and Nordic countries. Kamran joined a multi-family office managing their own fund of hedgefunds with 400 million USD AuM in 2009. Kamran has worked and lived in Vienna, Frankfurt, Amsterdam and Stockholm. Born in 1974, Kamran today again lives in Vienna, Austria.

Latest Articles

Indecap-PriorNilsson Deal Gets Regulatory Nod

Stockholm (HedgeNordic) – The Swedish Financial Supervisory Authority, Finansinspektionen, has granted approval for Indecap’s acquisition of fund boutique PriorNilsson Fonder. This strategic collaboration will...

Tidan Rides High on Normalized Market Conditions

Stockholm (HedgeNordic) – Tidan Fund, a hedge fund focused on capturing capital structure opportunities, is approaching its third anniversary this October with strong momentum....

Month in Review – August 2024

Stockholm (HedgeNordic) – Nordic hedge funds delivered solid performance during the roller-coaster month of August, with fixed-income-focused hedge funds leading the charge. The Nordic...

Danske Bank’s Multi-Asset Hedge Funds Gain Momentum

Stockholm (HedgeNordic) – In August 2022, Danske Bank Asset Management launched a hedge fund designed to capture ‘true’ alternative risk premia as compensation for...

Inspired by AP7, Carnegie Launches Leveraged Global Equity Fund

Stockholm (HedgeNordic) – As Carnegie Credit Edge comes to a close, Emil Nordström, who managed the fund’s derivatives strategy, is now steering a new...

Mandatum’s CTA Defies Trend in Tough August for Trend-Followers

Stockholm (HedgeNordic) – Trend-following managers had a tough time navigating markets in August, as evidenced by the 4.5 percent decline in the SG Trend...

Allocator Interviews

In-Depth: Commodities

Voices

Request for Proposal

- Advertisement -