Opalesque UCITS intelligence

Transcription

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Issue 02 | July 2013
In This Issue
SPECIAL : Assets and performances for
6 UCITS platforms
Latest statistics ....................................................... 3
Introducing the Intelligence UCITS Newsletter:
Leader interview:
Dear new readers,
Michael Sanders CEO of Alceda explains how
Alceda provide AIF solutions ..................................... 6
Opalesque is delighted to announce the launch of this new publication in
collaboration with Sophie van Straelen, focusing on the universe of our
Alternative UCITS database.
Feedback from managers:
Opalesque UCITS Intelligence is a quarterly publication providing
comprehensive analysis on product trends, distribution and market
initiatives. Sophie has a long track record of market research in European
Alternative Investments and has analysed the evolution of the UCITS market
since its early stage development in the year 2000.
Why UCITS Intelligence?
We believe that both fund managers and investors worldwide are interested
in regular statistics on this universe of funds to understand market dynamism
and regulatory changes. Despite criticism of low performances, the
UCITS format is fulfilling new investors’ constraints in term of transparency
and regulatory requirements. Therefore the future of Alternative UCITS
Continues to be bright. The challenge is always to define which type of funds
are Alternative UCITS, and each database has its own criteria.
The Opalesque UCITS FUNDS Database already lists 800 Alternative UCITS
funds. Please contact db@opalesque.com to make sure your fund is listed.
Our existing database has been tested and reviewed by several professionals
and continues to add new funds. The Alternative UCITS fund universe is quite
concentrated - about 60% of the assets raised by the top five funds. Similar to
the hedge fund universe, we have seen since 2008 a major concentration of
assets into a smaller numbers of players. Investors choose security and
allocate mainly with mainstream funds and large brands.
Exploring costs, risks and asset raising .................. 9
Regulation:
How the AMF is responding to AIFMD? ............. 11
News round up:
News selection from Alternative Briefing on
UCITS ................................................................................. 12
Exclusive:
Opalesque Fund Table YTD June 2013 ............... 14
KEY FIGURES end of JUNE 2013:
(figures provided by Nara Capital)
AUM Alternative UCITS : EUR 163 billion
Number of fund stracked by Nara : 864
EstimatedAUM in UCITS platforms : EUR 11,8 billion
UCITS Alternative Index Blue Chip June 2013 : -1,78%
UCITS Alternative Index Blue Chip YTD 2013 : 1,82%
Matthias Knab
Opalesque
About your editor:
Sophie van Straelen and Asterias Ltd:
Sophie van Straelen started her professional career in investment banking spanning derivative markets and hedge funds. Her
12 year experience in investment banking provided a strong base to found Asterias Ltd, the consultancy located in London,
specialised in delivering strategic insight in distribution for service providers and hedge fund managers. Listed in 2009
by EFinancial News as one of the top 100 most influential women in finance in Europe, she is a recognized, valuable and
independent source of analysis for the media, lobbying groups and investors.
Copyright 2013 © Opalesque Ltd. All Rights Reserved.
EDITORIAL
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In its latest report, the hedge fund research firm PREQIN had some interesting research on Alternative
UCITS (the report is freely available). Highlights included:
•
•
•
•
•
86% of investors in UCITS hedge funds are based in Europe
Long/Short equity has been the most commonly sought UCITS by investors in the last 12 months
Half of the UCITS hedge fund pursues a Long/Short strategy
12% of UCITS funds are managed by US based fund managers
UCITS hedge funds returned 2.46% in Q1 2013 compared to 3.22% for hedge funds
First, I would like to outline the difficulty to analyze the funds and strategies universes which combine
hedge fund managers and long only firms. Is the biggest fund under that category ( ie Standard Life
Global Absolute Return Strategies Fund)– suitable under Alternative UCITS? With $25 billion under
management is its weight appropriate ?
It makes sense to divide Alternative UCITS in two universes: Hedge funds and long only in order to
identify the style of management and compare funds that are using similar investment guidelines.
Some allocators such as Daniel Capocci, CIO at Archidas selecting UCITS, explains that combining the brand of long only managers
with specific Long/Short skills in hedge fund managers gives a good mix to investors, especially retail investors.
Yes indeed, Long/Short equity strategy is the strategy that probably fits the best under a UCITS format. We have addressed this issue
in our interview with event driven managers.
Most asset allocators and investors recognize that the pool of talent is mainly European. See PSAM’s comment in this edition on their
experience in bringing their US expertise under a UCITS format.
Finally, the levels of returns are still a critical aspect of UCITS funds at a time where retail and institutional investors are looking for
yields! However, investors in general are aware that liquidity and regulation are limiting their investment processes and therefore
their upside in performance. I remain extremely prudent on the level of communication to investors on strategies such as Risk Parity,
especially when the performance volatility, ; as experienced in May and June, could have a negative impact on the UCITS brand.
When Matthias and I were at the GAIM Conference, we met several investors and asset allocators who were pleased to read more
about the UCITS platforms and their models. Consequently, we have decided to provide even more insight on this specific universe
and we will continue to follow in our coming editions.
We wish you a happy reading and are look forward to hearing your feedback !
Have a lovely summer !
Sophie
sophie@opalesque.com
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MARKET STATISTICS
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Alix Capital Q2 2013 report
Key findings:
• UCITS absolute return fund’s assets under management increased by 5.60% during the second quarter of 2013 and by 17.85% since
the beginning of the year reaching a new high of EUR 163 billion.
• Five out of eleven strategies display positive performance since the beginning of the year, Long/Short Equity being the best
performer with +3.39%.
• The best performing UCITS absolute return funds since the beginning of the year are the ML Pegasus UCITS Fund, a long/short
equity fund managed by Clareville Capital up 28.22%, followed by the Odey UK Absolute Return Fund, also a long/short equity fund
managed by Odey Asset Management, up 23.92% and the ML DUNN World Monetary and Agriculture Fund, a CTA fund managed by US
based manager Dunn Capital up 21.10% since the beginning of the year.
• The Plurima Unifortune Global Strategy Fund is the best performing fund of funds since the beginning of the year with a
performance of 5.53% at the end of June while the Credit Suisse Prima Multi-Strategy is the largest one by assets with EUR 619
million.
• The Morgan Stanley Fund logic and the Merrill Lynch Invest platforms are the largest fund platforms in term of number funds
with 18 single UCITS absolute return funds while Deutsche Bank DB Platinum is the largest platform in term of assets with EUR 2.56
billion at the end of June 2013.
Louis Zanolin, CEO of Alix Capital, says: “UCITS absolute return fund assets continue to grow during the second quarter of
2013. This is explained by several factors. The continuous shift from long only to absolute return fixed funds is probably the most
important reason currently. Given the size of the long only fixed income market, one can expect this trend to continue if not
to accelerate during the next quarters. Other key important drivers are linked to more secular trends such as the continuously
increasing need for highly regulated and liquid products able to deliver consistent absolute returns.
Louis Zanolin further adds: We are seeing more and more US based investment managers launching UCITS funds.Fund platforms
and their benefits in terms of easy market access are playing an essential role in this development. While they still only account for
5% of the total number of funds, US based managers represent 37% of all platform funds.”
In our view, the UAI Industry Report gives access to the most comprehensive information about the UCITS absolute return funds
universe. Nara Capital has a long track record in the sector and is managing investors’ portfolios.
The report can be purchased on the UCITS Alternative Index website or by contacting Alix Capital.
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MARKET STATISTICS
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MARKET STATISTICS
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ew
INTERVIEW: ALCEDA
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AIFM CHALLENGES: HOW ALCEDA PLATFORM IS BECOMING A EUROPEAN PASSPORT FOR AIF
FUNDS?
in billion euros
Opalesque UCITS intelligence met Manuela Fröhlich, head of
Global Fund Sales and Helmut Hohmann, Managing Director
Sales, discussing how a provider such as Alceda can become a
one shop solution for hedge fund managers wishing to enter the
European distribution market. Michael Sanders, Chairman of
nt company
in Luxembourg
the registered
Board of Alceda
Fund Management S.A will also give us his
perspective on the evolution of UCITS.
Total Assets managed by
Assets under
Alceda’s group
Administration (in bn EUR)
4,51
3,57
ent
Manuela, can you explain us what your platform is providing
ry as UCITS
andmanagers?
Alternative Investment
to fund
exible and reliable solutions to our clients, both
onal investors,
straightforward
to the
Alcedafrom
enables
asset managers
to structure their investment
rategies strategies in a UCITS format as well as in any other Luxembourg
structuring solutions.
5,4
1,89
0,55
2008
2009
2010
2011
2012
tructuringWith
alternative
and traditional
our long-standing
history as UCITS and Alternative
Investment Platform we are providing flexible and reliable
solutions to our clients, both asset managers and institutional
investors,
from
straightforward
to the most complex investment
ent provider
of private
label
UCITS structuring
strategies.
Clients by Geography
91,7%
The Alceda’s approach is to provide an open architecture where
managers
choose their
preferred counter parties for
pecialistsfund
in the
fields ofcan
structuring,
initiation,
custody,
trading,sales
etc.. and
This marketing
approach is particularly attractive
, investment
controlling,
for asset managers that do not have a presence yet in Europe
and for whom, the regulatory barrier is high.
Historically, Alceda’s platform was created to structure
Investment strategies into a reasonable format – such as UCITS,
SIFs or any other available Luxemburg product structure - for
asset managers wishing to enter the German market. Each
market in Europe has its own investment culture, its own
preferences for fund structure, even if UCITS today remains a
good solution for pan European distribution.
One of today’s issues is to have the engine power to provide
flexible solutions; we are not the only provider offering
these types of services, however, we are independent, with a
significant size and track record and a strong continental sales’
presence since 2007. We grew rapidly and have the confidence
of both investors and fund managers.
Many managers not only just want platform providers to
structure their fund into a UCITS format in a timely and cost
efficient manner, they also want the provider to help them
with the distribution and marketing of the fund. Managers
increasingly realise that distributing a UCITS fund is quite
a different ball game to distributing an offshore fund and
therefore seek platform providers who have the necessary
distribution expertise, dedicated sales staff and far reaching
network that ensures their fund launch is a success.
Europe
6,0%
2,4%
US
Asia/Pacific
Source: Alceda Fund Management S.A., data as of 30.06.2013
At Alceda we have a so called „Global Fund Sales“ Team.
9 This
team is in charge of distributing a very focused number of
funds on the platform. The team covers the whole range of
investor types (Independent financial advisors, banks, family
offices, institutional investors, etc.). The geographical focus of
our distribution activities are the German speaking regions in
Europe, the Nordics, Asia (as we opened an office in Hong Kong
in April 2012), and LATAM (we partnered up with a dedicated
LATAM distribution agent).
Alceda‘s dedicated fund sales team function aims to help
managers optimise fund distribution and achieve their full
sales potential. Alceda offers managers access to strong
distribution networks, close partnerships and/or exclusive
distribution arrangements. Upon the fulfilment of certain
product criteria, such as a certain level of fund AUM, a three
year live strategy track record and convincing performance,
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>> Alceda | Client Overview and Type of Fund Regulation
INTERVIEW: ALCEDA
77
CLIENT BREAKDOWN
TYPE OF FUND REGULATION
1,2%1,2% 2,4%
5%
21,4%
78,6%
90,5%
UCITS
Family Office
Asset Manager
Foundation
Pension fund
Non-UCITS*
Bank
Source: Alceda Fund Management S.A., as of 30.06.2013
© 2013 Alceda
Alceda works in close cooperation with the manager to develop
an in-depth distribution concept that includes the identification
of potential clients and the planning of targeted marketing and
distribution activities.
We offer our preferred partners an extensive sales and
marketing service that includes the creation of marketing
materials such as fact sheets, PR activities, inclusion of the fund
on Alceda’s website, as well as the provision of fund data to
data providers.
Alceda organises numerous road shows and web-conferences
that provide managers with the opportunity to present their
funds to our broad distribution network. Managers also have the
option to join Alceda at key industry events, where they can
present their funds together with Alceda at our professionally
presented exhibition stands.
Helmut, can you tell us a bit more on your offering in AIF
funds? How do you see this market developing in Europe?
AIMFD promises to change the landscape for how firms attract
and manage their assets.
The distribution capacity in Europe is evolving and changing
to adapt to the new AIFM Directive. We see the directive as
bringing positive changes. Investors in Europe will access to
a larger range of investment strategies under a regulated
format. The AIF funds will cover liquid strategies, potentially
using higher leverage and more complex investment guidelines.
Investors will be able to access these strategies. We see a
number of illiquid strategies at the frontier with private equity,
developing into a fund structure and offering access to long
Source : Alceda Fund Management S.A., as of 30.06.2013
* incl. all other types of regulated vehicles, will become AIFs
10
term investments. We foresee a real development in renewable
energies and portfolios of real assets. These strategies are in
higher demand for potential higher returns. If they are available
in AIF funds, the regulated format will become rapidly very
attractive to institutional investors.
Some asset managers do not have the legal and compliance
resources to work on the registration of an AIF structure in
Europe. Some are also sceptical on the real investment market
in Europe. Those are our clients. We act as an external advisor
and help them building the right fund structure to distribute
in Europe. We are positive on the AIFM directive despite the
general critics, market players like Alceda are opening new
investment opportunities and creating a positive outlook for the
future.
We believe, that in a mid- to longterm perspective, AIFMD
compliant products will reach the same “Gold Standard”
acceptance by global investors, as UCITS already has.
Why do investors choose UCITS rather than offshore hedge
funds?
In our opinion the relative success of asset management
companies raising assets into UCITS products is more a function
of strong distribution channels and brand recognition, rather
than a loss of competitive advantage by hedge funds. Offshore
hedge funds have historically raised most of their assets from
UHNW individuals, family offices, and FoHF. This led them to
build distribution networks well suited to these investor types,
where the number of targets is relatively low but the average
ticket size is high. In contrast, asset management companies
have extensive distribution networks targeting assets from the
opalesque.com
INTERVIEW: ALCEDA
retail market right through
to institutional investors,
and thus have been well
placed to exploit the
demand from Alternative
UCITS products which has
come from these channels.
However, as risk appetite
returns and investors
become more adventurous
we expect to see smaller
and more nimble managers
Michael Sanders
increasing their market share
and challenging the bigger players to be more innovative in their
offerings.
Who is investing in UCITS hedge funds?
UCITS is the investment vehicle of choice for many investors, as
a way to gain easier, more liquid and more transparent exposure
to alternative investment strategies. We expect to see continued
demand for single manager alternative strategies in 2013, with
many investors still focusing on increasing diversification in their
portfolios. This growth will be supported by the ever increasing
range of alternative strategies available to investors. Alternative
asset managers are increasingly attracted to UCITS due to the
greater distribution flexibility that it provides, and the resulting
opportunity to significantly expand their investor base.
Even with AIFMD, there is still a growing demand for Alternative
UCITS structures outside of Europe, particularly in Asia and
LATAM. We are encouraged by the prospects in the Alternative
UCITS sector and believe alternative strategies in a UCITS format
will continue to attract investors across the risk-spectrum in
2013 and beyond.
Will hedge funds benefit as European pensions diversify out of
equities into other asset classes?
More pensions fund money will flow into hedge funds, which
are still seen as good diversifiers. On the other side, also other
options like private equity or Real Assets are proving attractive
right now.
German Hedge Fund Market and further trends
German investors have painful experiences in hedge funds.
They began to allocate between 2006 and 2007 and ended
up with FoHFs in 2008. The negative impression of the hedge
fund industry is due to the lack of liquidity, transparency and
insufficient performance combined with disproportionately high
fees. The hedge fund exposure was also reduced by the negative
attitude to hedge fund-related investment activities in the press
and the political environment.
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The demand from German investors is however increasing due to
the current low-yield and high-volatility environment as well as
the ongoing political and economic uncertainties.
European regulation will somehow foster the development of
hedge funds as the rules for insurance and pensions companies
in Germany and Europe are tightening through Solvency II and
other rules. Hedge funds offer superior risk-return profiles that
might large investors animate to increase their allocation in
alternatives.
With the AIFM hedge fund managers authorised under the
directive will gain a passport to market EU-domiciled funds
freely to professional and institutional investors in the 27
member states.
2013 may be a challenging year for hedge funds, although the
fundamental attractions – low volatility, alpha and diversification
– will continue to attract investors. Hedge Funds found it
difficult to compete with the strong equity markets of 2012 and
the strong bull markets of early 2013.
With more funds available than ever, investors have the task
to choose from an expanding range of strategies and location
choices to select funds to build a solid portfolio.
Michael Sanders, you are Chairman of the Board of Alceda
Fund Management S.A; how do you see the future for UCITS?
Alceda has been participating and organizing numerous events
and road shows in Asia and Australia in 2012 and early 2013. We
see a huge interest in those regions and the increasing demand
is promising. UCITS is the investment vehicle of choice for many
investors globally, who are attracted by its regulated format as
well as the transparency and liquidity that UCITS offers.
With the UCITS universe continuing to mature and the quality of
managers increasing steadily, the future for UCITS alternative
funds continues to look bright.
We are therefore very optimistic that the UCITS platform
business will grow. Particularly mid sized manager from US and
Asia are currently looking for UCITS structures. A lot of them
have concerns to do the step to Europe on their own, because
they do not know the market and distribution structure, as well
as the regulatory framework. Our platform provides these type
of managers a one stop shop service regarding their fund set up.
And - as a difference to other platforms - we set up a separate
fund umbrella structure for every single manager. This assures
the manager, that he can use his own brand - and if the assets
reaches a decent size in the future to transfer the fund structure
to a stand alone solution.
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FEEDBACK FROM MANAGERS
99
Have UCITS had their time? Exploring costs, risks and asset raising.
Salvatore Cordaro, Founding partner and CIO at Tages Capital,
Marco d’Attanasio, founding partner and CIO at Hadron Capital,
Karim Leguel CIO of Rasini Fairway Capital and Dhan Pai, COO
and CFO at PSAM, joined me at the GAIM conference to share
their experience in managing UCITS and non UCITS funds.
Why did you launch a UCITS product?
• Dhan Pai explained that for PSAM the decision to launch a
european vehicle became pertinent because of specific european
investors’ request. Having run liquid versions of their flagship
strategy through managed accounts for almost a decade,
launching a UCITS was a logical development for PSAM.
• Marco D’Attanasio explained that for Hadron Capital the
decision to launch a UCITS-compliant fund was the result of
some requests from existing investors in their flagship offshore
fund who wanted exposure to different asset classes but with
the protection of a UCITS framework. Having considered this
request Hadron realised that the way their flagship fund was
managed was already consistent with the UCITS guidelines and
that it was possible to deliver the fundamental character of
Hadron’s investment DNA within the UCITS constraints.
• Tages involvement into the UCITS industry is a natural
extension of the work done by the team during its previous
experience at a premiere global investment bank. There the
team was responsible for the first and world largest UCITS
fund of UCITS funds, launched in 2009. This was also driven by
investor demand for transparency, liquidity and regulation and
the team capitalized on this trend.
Are costs an issue?
• There are specific costs attached to launching a UCITS fund,
including registration and passporting costs. However, the panel
recognized that those costs are generally fixed costs, which
will mostly impact smaller funds. As Dhan Pai says : « the vast
majority of Alternative UCITS funds have sub-optimal AUM
resulting in greater tracking error and higher TER. As funds
increase in size and the tracking error, costs, etc. become less
of an issue, it is easier to attract capital from institutional
investors.
• Marco d’Attanasio outlined that the managers’ aim should be
to bring the costs of their UCITS funds in line with their relevant
offshore strategy and investor expectations. He also added that
tracking error between a UCITS fund and its offshore version
should be taken into account in the due diligence process as
some strategies may experience replication issues.
• The panel agreed that perceived additional costs of a
regulated vehicle should not prevent managers form registering
and running a UCITS.
• Salvatore highlights how the Ucits regulation prevents
managers to expense inappropriate costs to the fund (when
compared to the flexibility of an offshore vehicle). There is also
the “cost of regulation”, which stems from more constraints
on the investment universe. This translates over time in lower
performance compared to the offshore sector, but (at least
based on available research) this effect seems more than
compensated by lower risk, leaving ucits alternative funds with
better risk adjusted returns.
• PSAM notes that reflecting the trend observed in the offshore
space, UCITS investors have also become more sensitive about
TER. In particular those traditionally investing in long only UCITS
who see Alternative UCITS as a diversifier who compare relative
cost structure of a very broad range of products, including ETFs.
• Salvatore agrees with Dhan, and quotes some research showing
that the tracking error is diminishing as the industry matures
and more assets are invested through UCITS vehicles
Risks : are UCITS less risky products?
• For the panel, risks are equal between investing in an offshore
and a UCITS. The panel was concerned that investors could
consider regulated vehicles as carrying less risks. Fraud risk,
counterparty risks and even liquidity risks are in both regulated
and non regulated funds. In the case of regulated vehicle,
someone can be responsible, either a custodian, a regulator ;
however, investors must do their due diligence on operational
issues for both structures.
• One critical factor is understanding the strategy and the
structure of the fund : how the assets are valued, in case of a
complex strategy : what is the impact of a swap structure in
terms of risks and costs.
• From PSAM’s experience in running their UCITS, liquidity
mismatch is one of the risks/concerns that investors mention the
most. PSAM’s UCITS was launched almost 3 years ago and they
believe that this track record generated over different periods
and market environments now helps address those liquidity
mismatch concerns. However, in the first few months after the
launch, PSAM felt that their experience in running liquid versions
of the main strategy through managed accounts was the best
way to address those concerns. The fact that PSAM never gated,
suspended liquidity or side pocketed investors even in their
more liquid productswas a strong plus.
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• Dhan Pai adds that there has been concerns regarding how
some strategies have been made UCITS compliant through
the use of structuring techniques. He says it is critical for the
industry’s reputation to make sure managers comply with the
spirit of the regulation as well.
• Marco D’Attanasio agrees with Dhan about liquidity mismatch.
Hadron decided to publish the NAV of their UCITS fund on a daily
basis not because their investor base demands daily liquidity,
but because they want to give the assurance that they would be
able to liquidate the portfolio anytime at the price at which the
securities are valued in the fund.
• The level of liquidity in UCITS can become a risk factor for
co-investors. The stability of the fund and its strategy can be at
risk when suddenly the fun dis facing important redemptions.
How can an investor appreciate that risk ?
• Salvatore agrees that risks are similar to the offshore world
(if not higher, as UCITS structures are often more complex). In
particular, regulation risk of providing a false sense of security
as investors tend to associate regulation with prevention
of operational accidents. As for listed (regulated) equities,
regulation itself does not prevent but surely mitigates the risk
of frauds (think of Enron or Parmalat).
10
10
actively monitoring the Alternative UCITS space.
• Dhan Pai considers that while there has been a growing
number of funds covering various strategies launched over the
past couple of years, some strategies are still under represented
in the UCITS industry. There is additional benefits in terms asset
raising for first entrants.
• Karim Leguel thinks that investors are moving away from
investing in big managers, perceived wrongly as safer. Smaller
niche managers are offering capacity and attracting investors.
• Marco D’Attanasio notes the increased institutionalisation
of the UCITS phenomenon, which is able to capture different
groups of investors attracted by the combination of liquidity,
transparency and regulatory supervision but within a strategy
provided by a hedge fund manager. Some of the traditional
funds of hedge funds are looking at UCITS as a way to improve
the liquidity profile of their offshore offering; some traditional
long-biased multi-managers can finally access less directional
strategies in a format which is suitable for their typical onshore
structures. On the other hand, the private banks see the tax
and regulatory advantages inherent in a UCITS structure versus
the offshore equivalent as hugely attractive. In addition to that,
in some countries there are significant benefits for insurance
companies holding their capital in regulated vehicles rather
than offshore structures.
Raising assets with UCITS
• In both offshore and UCITS, the big players attract most of the
investment flows.
• Critical size, brand name and performances are critical factors
to raise assets, especially institutional investors.
• Salvatore outlined that as far as asset raising is concerned,
most of the asset growth in alternatives post 2008 has been
driven by US institutions, which by their nature are not the
natural buyer of UCITS funds. Most of the growth of the industry
in Europe has indeed been channelled via UCITS vehicles and we
are seeing an acceleration of this via a virtuous cycle of “more
assets get attracted, reducing tracking errors, and attracting
to the industry more talented managers, which in turn attracts
more investors to it”.
• PSAM also believes that it is critical for a manager to identify
and communicate about the drivers of performance for their
UCITS compared to their main strategy to appropriately manage
investors’ expectations.
• Salvatore Cordaro mentioned that todays investors in
Alternative UCITS are evolving towards even more institutional
involvement. Investors in Long Only funds are now moving to
Alternative UCITS. According to Salvatore, this larger range of
investors is very positive. Dhan Pai confirms that they have been
working with new types of investors, including traditionally long
only products that invest cross assets, and that have been more
About Hadron Capital:
Hadron Capital is an asset management firm that specializes in
European event strategies founded in London in 2004. Hadron
decided to enter the UCITS space in 2010 by launching the
Hadron Alpha Select fund, the onshore regulated version of the
Hadron Fund, its flagship fund which has been in existence
since October 2004. Hadron’s investment strategy is a Long/
Short Multi-Asset Class with a relative value and event-driven
focus. The approach is to exploit bottom-up dislocations and
mispricings as well as near-term, catalyst-driven opportunities
across the capital structure of companies focusing on situations
where short term triggers and catalysts are present. Capital
is deployed opportunistically in response to the investment
opportunities. As a result, the asset class allocations shift
naturally between the strategies over time due to changes in
the investment landscape.
About Rasini Fairway:
Rasini Fairway Capital is an Investment Manager specialized in
hedge funds and Alternative UCITS. Rasini Fairway Capital also
operated a UCITS seeding platform called RF Capital which on
the 26th of June launched its first fund, Sierra Europe UCITS,
which operated a European Equity Long/Short strategy.
opalesque.com
About PSAM:
PSAM is a firm focused on global event driven investing with
offices in New York and London. The firm invests in merger
related, stressed and distressed related and special situations
oriented situations around the globe. PSAM has operated a UCITS
fund since September 2010.
About Tages Group:
Tages Group is a European investment and advisory group.
AMF ISSUES
The implementation of AIFM this summer is certainly one of
the greatest challenge of the european hedge fund industry.
As we are publishing this edition, we do not have yet all the
elements in hands to get a clear vision on the short term impact
on the fund managers. However, we have looked at the AIFM
implementation guidelines in the UK and in France, trying to
adress how the two countries adress such regulatory issues.
France : feedback from the AMF, Edouard Vieillefond
at the latest Opalesque Roundtable in Paris. (The
complete document can be downloaded on www.
opalesque.com).
We have been helping a lot technically to redraft the Code
monétaire et financier alongside the French Treasury, as we did
for UCITS IV. And we have had to do it with the deadline in mind,
because the ordinance implementing the directive into French
law will have to be published no later than July 31st.
People often think that the AIFM directive is only targeted at
hedge funds, which is far from true, particularly in France.
About two thirds of our 600 French asset management
companies will eventually be AIFM authorized and the majority
of funds domiciled in France are not UCITS and will fall under
the category of AIF, which is something people don’t realize.
These actors are already subject to national regulation and
supervision, regardless of the AIFMD.
Also, one should keep in mind that this directive was originally
one of the responses of Europe to the G20 following the
crisis. From the outset, AIFMD was a directive aimed primarily
at addressing systemic risks (through enhanced reporting,
regulators’ power to set a limit to funds’ leverage). Fostering
competition and opening the European market (through the
passport for management and marketing activities) only came
second in the minds of legislators.
Against this background, it is worth noting that a number
of provisions in AIFMD are directly inspired from the French
regulation framework. Actually this is one of the reasons why
generally speaking French asset management companies will
have it easier to adjust to it than some of their European
competitors, because already comply with many standards it
contains.
11
11
Tages is active across Europe in alternative asset management
and corporate finance / advisory. In asset management, Tages
provides solutions focused on absolute return strategies,
catering to large institutional investors and family offices
and engaging as a partner to banks and financial products’
distribution channels. In corporate finance / advisory, Tages
provides financial advisory services to domestic and international
clients on mergers, acquisitions, divestitures, capital raising,
restructurings and other strategic corporate transactions.
11
11
The rules on depository provide a good example: both in AIFMD,
and tomorrow in UCITS V, they are very much inspired by French
rules, as these have been widely acknowledged as protective
and efficient. There are other examples, such as valuation or the
prevention of conflicts of interests.
So the bottom line is that managers will have to adapt to certain
new requirements (reporting, liquidity management etc.) which
are a consequence of the crisis, but overall it is not for French
asset managers that the gap to bridge is the widest.
Then my second point is that – similar to what we did when
implementing UCITS IV back in 2011 – we have tried to take
advantage of the implementation of AIFMD to try and simplify
a number of things and make the environment more businessfriendly and simpler. As you probablyknow, we have tried
to simplify fund denominations in the Code monétaire et
financier,merge together or rebrand certain exiting vehicles,
and better delineate between retail and non-retail vehicles. We
have also simplified the subscription thresholds for retail and
professional investors across our existing AIF.
My last point is that the implementation of AIFMD (and later
UCITS V) should not distract asset managers from other pieces
of European legislation like EMIR and MiFID 2 which will have
a huge impact on asset management as well. Questions of
consistent articulation between these texts may raise some
important issues, because, to be frank, they seem to have been
thought “in silos” to some extent, without cross-examining their
consistency with one another. For instance, EMIR concentrates
counterparty risks in OTC derivative transactions at the level of
central clearing houses, whereas UCITS sets rules for spreading
that counterparty risk. The status of securitization vehicles
across AIMFD and EMIR is another interesting issue.
So, at the end, I think there is a lot of progress to be made
at international and european levels, to ensure that those
regulations are consistent with each other and that they
create an overall environment that is favorable to the asset
management industry. We must also remind those in charge of
addressing the shadow banking issues, that entities from the
asset management world which are part of shadow banking
are already heavily regulated in Europe, something that some
regulators, notably banking regulators, don’t realize enough.
opalesque.com
NEWS ROUND UP
12
12
NEWS SELECTION FROM ALTERNATIVE BRIEFING ON UCITS – JUNE AND EARLY JULY 2013
MANAGERS
REGULATION
Alternative strategies that are normally used by hedge
funds and private equity are increasingly being packaged as
mutual funds in the U.S. and as UCITS in Europe. Blackstone,
one of the world’s leading investment and advisory firms, is
jumping on that bandwagon.
The Luxembourg Parlement adopted bill 6471 on alternative
investment fund managers and transposing the AIFMD into
Luxembourg law in its first constinutional vote on 10 July
2013. See Dechert latest excellent summary paper.
Blackstone Alternative Asset Management (BAAM),
Blackstone’s hedge fund solutions business, is set to
launch its first alternative investment-focused mutual
fund that offers daily liquidity. BAAM is the world’s largest
discretionary allocator to hedge funds and has around $49bn
under management.
-------------------------------------------------------------------------Bernheim, Dreyfus & Co., an asset manager based in Paris
that runs absolute return strategy funds and managed
accounts, has just launched a global macro UCITS IVcompliant fund called Carmel Global Opportunities. This
new fund invests in multiple asset classes across the OECD
universe, and aims to deliver steady long-term capital
appreciation through diversification of investment style,
alpha source and time horizon.
-------------------------------------------------------------------------SunTx Capital partnered with Ron Dodson to launch IXTHYS
Capital; former Mizuho trader Jeffrey Yap was reported to
be launching a multi-strategy credit strategy; Valuewalk
said CQS would launch a long/short equity hedge fund; and
Spartan Fund has launched a discretionary fund onTREND.
Former JPMorgan trader Deepak Gulati raised about $300m
in assets for his new hedge fund Argentiere Capital, said
Bloomberg; and Goldman Sachs’ ‘hedge fund for the masses’
raised $58m in first month.
Investec announced it was launching a UCITS-compliant
version of John Stopford’s multi-asset fund; and Stockholm,
Sweden-based RPM Risk & Portfolio Management launched
the RPM Evolving CTA Fund targeting new and growing CTAs
as Luxembourg‐domiciled fund (SICAV).
-------------------------------------------------------------------------Man Group teams with Nomura for fixed income fund to
launch an Alternative UCITS fixed income fund designed
to take advantage of the current low interest rate
environment.
-------------------------------------------------------------------------In the second part of its two-part white paper on the
AIFMD’s compliance requirements, the author Shane Brett
looks at further obligations and opportunities the Directive
implies, including fund domiciliation, manager liability,
reporting requirements, managing illiquid investments and
the AIFMD Passport. You can download his excellent white
paper : AIFMD-what should you be doing to comply ? in
Opalesque Briefing 10th of July.
-------------------------------------------------------------------------European Parliament lawmakers will delay voting on rules to
curb fund manager bonuses as they continue to tussle over
details of the plans.
MARKET TRENDS & SURVEYS
To what extent have UCITS become a new home for most
hedge funds? Participants note during the recent Opalesque
UK Roundtable that even though the UCITS fund structure is
becoming a lot more popular among investors and is set for
further growth, it will not likely replace the offshore fund
structure. Liquidity considerations, tactical opportunities,
and individual investors’ needs will greatly participate in the
growth of the UCITS universe.
A new trend among institutional investors is a move towards
pan-alternatives portfolios, participants noted during the
recent Opalesque UK Roundtable. Such portfolios do not only
allocate to hedge funds or private equity. There is another
trend in that investors used to investing in single managers
funds are now looking to invest in funds of funds. It was
further noted that institutional investors are becoming much
more active and also more regulation-savvy.
According to Andrew McCaffery, Global Head of Hedge Funds
at Aberdeen Asset Management, a $320bn asset manager,
many institutional investors are moving towards panalternatives needs and portfolios. Such portfolios do not
merely include hedge funds and private equity, “but a whole
range of things they want to consider in their alternative
allocations and how to blend them for their portfolio
objectives.”
opalesque.com
NEWS ROUND UP
13
13
MARKET TRENDS & SURVEYS
implementing AIFMD since the release of the Level 2 text
The market opportunity for retail alternatives is already
huge, continues to grow, yet is still in its infancy, says SEI
in a new 24-page report called “The Retail Alternatives
Phenomenon.”
• Depositary costs continue to be a concern, with 41% of
respondents expecting depositary costs in the region of
5–25bps
Indeed, alternative strategies that are normally used by
hedge funds and private equity are increasingly being
packaged as mutual funds in the U.S. and as UCITS in
Europe. This is what the report calls “retail alternatives.”
-----------------------------------------------------------------------Investment software provider Multifonds has published
its white paper, entitled: The impact of AIFMD and
convergence survey. Key findings from the survey include:
• 83% of respondents agree convergence of traditional and
alternative funds will continue
• 64% of respondents view depositary liability as the most
challenging aspect of AIFMD
• 59% of respondents believe that AIFMD will become an
international standard for distributing AIFs globally, similar
to the UCITS brand
• Luxembourg and Ireland are likely to be the most
successful onshore EU domiciles under AIFMD for attracting
new business or funds re-domiciling
• 70% of respondents agree that non-EU managers will set
up European operations to take advantage of AIFMD
• 77% of respondents think that EU managers may choose to
set up offshore structures to avoid AIFMD costs
• 52% of respondents have seen a rise in the costs of
• 77% of respondents agree that sub-custodians will be
subjected to increased due diligence
-----------------------------------------------------------------------ML capital published mid July its latest Barometer. John
Lowry, Founder & Co-CEO of ML Capital commented:
“Change is the main theme this quarter. There is major
upheaval facing the alternative investment industry at
present, as it prepares to address key regulatory initiatives
including FATCA and the AIFMD. Against this complex
regulatory backdrop, the results of the latest barometer
confirm the feeling that we are at a potentially major
inflection point with regards to investor sentiment and
behaviour. Whilst the next few months should tell which
direction the world is going – our results confirm that we
may already be at a major point of change. While investors
are very bullish on the outlook for the US Long/Short
and Global Macro sectors, sentiment has turned negative
towards two of the previously most popular strategies
over the past three years – Emerging markets equity and
Government bond funds.”
Opalesque media kit gives you access to the top news
round up in UCITS ; the recent region roundtables in the
UK, France and Germany provide excellent feedback
from market players on the overall critical issues such as
regulation, market trends and investors’ demand. Don’t
miss reading our content to be updated on the most
important issues of our sector.
opalesque.com
OPALESQUE FUND TABLES
14
14
All AUM are in million euros, except Morgan Stanley in USD.
ALCEDA
MANAGERS
FUNDS
STRATEGY
June
YTD
perf
AUM
May
2013
AUM
June
2013
Aquila Capital
Risk Parity 7 fund
Multi assets
-8.4%
681,83
598.64
Aquila Capital
Risk Parity 12
Multi assets
-13.7%
466,67
382.21
Aquila Capital
AC Absolute Return-Triple Alpha Fixed
Income
Other
1.9%
4,12
3.99
Aquila Capital
AC Quant- Spectum Fund
Managed Futures
-10.4%
37,12
25.79
amandea Vermögensverwaltung
amandea - HYBRID
Managed Futures/CTAs
-1.9%
15,24
14.21
Kepler Capital Markets
Frankfurt branch
KCM Fund - RiskProtect
Other
-1.6%
91,83
92.11
Loys AG
LOYS FCP – LOYS Global L/S
Other
6.8%
32,36
12.50
Polunin Capital Partners Limited
POLUNIN FUNDS – DEVELOPING
COUNTRIES FUND
Other
-2.7%
125,75
114.81
P.A.M. Prometheus Asset
Management GmbH
Prometheus-Eqcelerator
Managed Futures/CTAs
0.9%
7,07
6.85
P.A.M. Prometheus Asset
Management GmbH
Prometheus-Alternative Stars
Fund of Fund
-0.9%
13.82
13.44
Promont AM AG
Promont-Europa 130/30
Mixed fund
5.4%
2,48
2.38
Rhein Asset Management
RAM (LUX) - Gold Protect Fund
Equities
-19.7%
5,09
4.37
Rhein Asset Management
Rhein Asset Management (LUX) Fund Equity Protect Fund
Equities
-4.8%
11,85
11.77
RPM Risk & Portfolio
Management AB
RPM Directional Fund
Mixed fund
Tideway Investment Partners
Tideway UCITS Funds-Global Navigator
Mixed fund
Reichmuth & Co Privatbankiers
/ PMG Fonds Management AG
Reichmuth&Co-Alpin Eur
Reichmuth & Co Privatbankiers
/ PMG Fonds Management AG
Rasini Fairway
2.04
1.1%
31,89
31.19
Multi Strategy
-4.3%
31.53
28.96
Reichmuth&Co-Hochalpin Eur
Multi Strategy
-4%
15.6
14.67
Stafford SICAV - Global Equity Fund
Fund of Fund
n/a
n/a
59.20
Disclaimer: The data are for information only with no commercial issues. They have been provided by the Fund Platforms and do not have any
objective to solicit orders. Past performance are not reflecting future performances.
opalesque.com
15
15
MERILL LYNCH
MANAGERS
FUNDS
STRATEGY
AQR Capital Management, LLC
AQR Global Relative Value UCITS Fund Multi-Strategy
Beach Point UCITS Management
LLC
Beach Point Diversified Credit UCITS Fund
Credit
Columbus Circle Investors GP
CCI Healthcare Long-Short UCITS Fund Equity Long-Short
Fulcrum Asset Management, LLP
Fulcrum Alpha Macro UCITS Fund Graham Capital Management,
L.P.
AUM
May
2013
May
YTD
perf
471
1.17%
14
-0.14%
342
9.99%
Global Macro
14
2.14%
Graham Capital Systematic Macro UCITS Fund
Managed Futures
67
10.61%
Marshall Wace LLP
Marshall Wace TOPS UCITS Fund (Market Neutral)
Equity Long-Short
437
4.26%
Och Ziff Management LP
Och-Ziff European Multi-Strategy UCITS Fund
Multi-Strategy
195
6.89%
QFS Asset Management, L.P.
QFS Currency UCITS Fund
Currency
6
-7.80%
TRG Management LP
TRG Emerging Markets Opportunity UCITS Fund
Emerging Markets
13
1.71%
Theorema Asset Management
Limited
Theorema European Equity Long-Short UCITS Fund
Equity
106
6.43%
Van Eck Absolute Return Advisers
Corporation
Van Eck Commodities Long-Short Equity UCITS
Fund
Long-Short Commodity
Equities
27
-4.40%
Westchester Capital
Management, LLC
Westchester Merger Arbitrage UCITS Fund
Equity
17
0.60%
York UCITS Holdings, LLC
York Asian Event-Driven UCITS Fund
Equity
52
7.52%
York UCITS Holdings, LLC
York Event-Driven UCITS Fund
Equity
331
11.11%
Zweig-DiMenna International
Managers, Inc.
Zweig-DiMenna US Long-Short Equity UCITS Fund
Equity
11
9.10%
opalesque.com
16
16
Deutsche Bank
MANAGERS
FUNDS
STRATEGY
June
YTD
perf
AUM
May
2013
AUM
June
2013
Winton Capital
Management
DB Platinum IV Systematic Alpha Index
Managed Futures
2.09%
1282
1289
Millburn Ridgefield
Corporation
DB Platinum IV Millburn Multi Markets
Index
Managed Futures
-5.44%
98
93
Lynx Asset Management
DB Platinum IV Lynx Index
Managed Futures
-1.18%
76
93
TT International
DB Platinum TT International
Global Macro
4.22%
28
28
Omega Advisors, Inc.
DB Platinum Omega
Equity Hedge
8.57%
93
91
Loomis, Sayles & Company,
L.P.
DB Platinum Loomis Sayles
Credit Long / Short
Launched
31.07.13
20
Paulson & Co. Inc
DB Platinum IV Paulson Global
Event Driven
-0.50%
34
33
Hermes
DB Platinum V Hermes Absolute Return
Commodities
Commodities
-5.30%
194
199
Hermes
DB Platinum V Hermes Enhanced Beta
Commodities
Commodities
-12.22%
101
85
IKOS
DB Platinum IV Ikos Currency Fund
FX
-6.56%
105
104
Deutsche Bank
db Hedge Fund Index UCITS ETF
Multi Manager: MultiStrategy
2.43%
603
598
Deutsche Bank
DB Platinum- THF Systematic Macro
Index Fund
Multi Manager: Managed
Futures/Macro
-1.45%
12
12
Deutsche Bank
DB Platinum- Macro Trading Index Fund
Multi Manager: Managed
Futures/Macro
-1.23%
7
6
Deutsche Bank
DB Platinum-THF Credit and Convertible
Index Fund
Multi Manager: Credit/
Convertible
1.82%
10
9
Deutsche Bank
DB Platinum -Equity Hedge Index fund
Multi Manager: Equity
Hedge
4.74%
9
9
Deutsche Bank
DB Platinum- THF Event Driven
Index Fund
Multi Manager:
Event Driven
4.75%
9
9
opalesque.com
17
17
LYXOR
MANAGERS
FUNDS
STRATEGY
June
YTD
perf
AUM
May
2013
AUM
June
2013
Canyon
Lyxor / Canyon Credit Strategy Fund
(Feb 2013)
Event Driven - Credit
3.56%
130
130
Tiedemann
Lyxor / Tiedemann Arbitrage Strategy
Fund (Feb 2013)
Event Driven - Merger
Arbitrage
6.34%
23
23
Winton
Lyxor / WNT Fund (Jan 2013)
CTA - Diversified
-0.63%
14
15
Old Mutual Asset Managers
UK
Lyxor / Old Mutual Global Stat. Arb.
Strategy Fund (Aug 2011)
L/S Equity - Statistical
Arbitrage
-0.69%
20
11
Caxton HAWK
Lyxor / Caxton Hawk Strategy Index
Fund (Jan 2012)
CTA - Emerging Markets
-4.48%
20
10
Lyxor
Lyxor Epsilon Global Trend Fund (April
2011)
CTA
4.91%
165
160
Lyxor
Lyxor Hedge Fund Index Fund
Multi-Manager - Global
Hedge Fund
1.53%
32
32
Lyxor
Lyxor L/S Equity Long Bias Index Fund
Multi-Manager - L/S Equity
6.72%
7
6.4
Lyxor
Lyxor L/S Equity Var. Bias Index Fund
Multi-Manager - L/S Equity
5.34%
5
5
Lyxor
Lyxor Credit Strategies Index Fund
Multi-Manager - Credit
0.68%
11
11
Lyxor
Lyxor Merger Arbitrage Index Fund
Multi-Manager - Merger
Arbitrage
4.56%
15
15
Lyxor
Lyxor Special Situations Index Fund
Multi-Manager - Special
Situations
4.42%
9
9
Lyxor
Lyxor CTA Long Term Index Fund
Multi-Manager - CTA
-2.79%
7
7
Lyxor
Lyxor Select Edge Fund (May 2010)
Multi-Manager - Active
Fund of Funds
3.86%
7
7
Lyxor
Lyxor T-REX Fund
Hedge Fund Replication
0.49%
7
6
Turner Investments L.P.
Turner Navigator Sub-Fund
Equity L/S > US >
Healthcare
NA
NA
NA
Karsch Capital Management
L.P.
Karsch Capital UCITS Fund
Equity L/S > Global (US
Focus)
NA
NA
NA
opalesque.com
18
18
MORGAN STANLEY
MANAGERS
FUNDS
STRATEGY
June
YTD
perf
AUM
May
2013
AUM
June
2013
Indus Capital Partners
Indus PacifiChoice Asia Fund
L/S Equity
10.82%
133
120
Indus Capital Partners
Indus Select Asia Pacific Fund
Long Only
4.58%
64
62
Algebris Investments (UK) LLP
MS Algebris Global Financials UCITS
Fund
L/S Equity
24.78%
25
25
Alkeon Capital Management LLC
MS Alkeon UCITS Fund
L/S Equity
2.83%
116
120
Ascend Capital, LLC
MS Ascend UCITS Fund
L/S Equity
3.82%
106
109
Claritas Administração de Recursos
Ltda
MS Claritas Long Short Market Neutral
UCITS Fund
L/S Equity
3.74%
14
15
Cohen & Steers Capital
Management Inc
MS Cohen & Steers Global Real Estate
L/S Fund
L/S Equity
Closed
Closed
Closed
Mesirow Financial
MS Discretionary Plus UCITS Fund
Managed Futures
0.26%
4
4
Winton Capital Management LLC
MS Long Term Trends UCITS Fund
Managed Futures
0.88%
19
19
Perella Weinberg Partners
MS Perella Weinberg Partners Tōkum
Long/Short Healthcare UCITS Fund
L/S Equity
4.41%
42
42M
P. Schoenfeld Asset Management
LP
MS PSAM Global Event UCITS Fund
Event Driven
5.92%
240
240
Quest Partners LLC
MS QTI UCITS Fund
Managed Futures
-5.06%
3
3M
Quantitative Investment
Management LLC
MS Short Term Trends UCITS Fund
Managed Futures
-4.77%
3
3
SLJ Macro Partners LLP
MS SLJ Macro UCITS Fund
Global Macro
7.69%
34
36
Sandler O’Neill Asset Management,
LLC
MS SOAM U.S. Financial Services UCITS
Fund
L/S Equity
8.86%
40
40
Turner Investments, LP
MS Turner Spectrum UCITS Fund
L/S Equity
1.33%
30
30
Pacific Capital Partners Limited
RiverCrest European Equity Alpha
Fund
L/S Equity
10.26%
8
8
Ferox Capital LLP
Salar Convertible Absolute Return
Fund
Convertible Arb/
Credit
8.51%
91
119
FundLogic SAS
Emerging Markets Equity Fund
Long only - MSCI EM
Tracker
-9.66%
429
409
opalesque.com
19
19
MONTLAKE
MANAGERS
FUNDS
STRATEGY
ML Capital Asset Management
Limited
MontLake Pegasus UCITS Fund
UK Equity Long/Short
Limited
MontLake Skyline UCITS Fund
Global L/S Equity
Emerging Markets
Limited
MontLake DUNN WMA UCITS Fund
US CTA/Managed Futures
Limited
MontLake Wanger EUR Smaller
Companies UCITS Fund
Limited
MontLake Wanger US Smaller
Companies UCITS Fund
June
YTD
perf
AUM
May
2013
AUM
June
2013
27.88%
12.00
10.90
1.63%
109.30
122.60
21.11%
23.20
22.30
European Small Cap –
Equity Long Only
8.70%
13.90
13.50
US Small Cap – Equity
Long Only
12.67%
52.90
52.00
opalesque.com
PUBLISHER
EDITOR
ADVERTISING DIRECTOR
knab@opalesque.com
sophie@opalesque.com
gdespo@opalesque.com
Matthias Knab
Sophie van Straelen
www.opalesque.com
Greg Despoelberch

Opalesque UCITS intelligence

Transcription

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