24 Oct 2011
ML Capital has reported an increase in demand for CTA’s, based on its latest survey on the growing market for alternative UCITS. They identify demand to be at an all time high, with 57% of respondents committed to the sector.
ML Capital surveyed a diverse range of active alternative UCITS investors, who collectively manage €80 billion and today invest upwards of €30 billion into alternative UCITS products.
The survey suggested that allocations to CTA’s and global macro strategies are set to continue to increase dramatically. The largest increase in allocations are to global macro systematic and CTA strategies, both of which saw demand increase over the last quarter from 30% to almost 60%.
Demand for developed equity market hedge strategies was shown to have declined since the beginning of 2011 and interest in event driven strategies has also been quite negative.
There is however a significant push into emerging markets funds underway – with 39% of respondents indicating a desire to move into global emerging markets UCITS funds.
The survey shows the two least popular categories this quarter are UK L/S and distressed.
ML Capital surveyed a diverse range of active alternative UCITS investors, who collectively manage €80 billion and today invest upwards of €30 billion into alternative UCITS products.
John Lowry, Co-Founder and Chairman of ML Capital, said “During this quarter, when respondents’ allocations to UCITS rose dramatically from 10 to 30 billion, the increase in market volatility has seen a big shift towards those strategies that offer the potential to make money, or at least protect a significant element of the markets’ risk.”
The survey suggested that allocations to CTA’s and global macro strategies are set to continue to increase dramatically. The largest increase in allocations are to global macro systematic and CTA strategies, both of which saw demand increase over the last quarter from 30% to almost 60%.
Demand for developed equity market hedge strategies was shown to have declined since the beginning of 2011 and interest in event driven strategies has also been quite negative.
There is however a significant push into emerging markets funds underway – with 39% of respondents indicating a desire to move into global emerging markets UCITS funds.
The survey shows the two least popular categories this quarter are UK L/S and distressed.
