Investors to increase long-short Ucits allocation

upward_graph_410Eighty-two percent of investors plan to increase their allocation to Ucits hedge funds in Q3 this year, with long-short equity strategies taking the largest share.

According to the UAI Quarterly Industry Survey, 45% of respondents said they would increase allocations to long-short equities, while less then 10% said they would pull money out.

With 16% of respondents currently investing in long/short equity it is already the most popular Ucits III strategy invested in.

However, 16% of investors said they would like to see more managers offering macro strategies. This represented the largest demand for more managers in a particular strategy.

Also, event-driven and commodity funds look set to attract more investors. Whereas just over 4% of investors in the survey currently invest in commodities funds, 11% of participants indicated they would like to see more managers in this area.

A surprise from the findings was that 40% of respondents indicated that they found offshore structures to be similar in cost, if not more expensive, then the Ucits structure. This goes against the perception that offshore is more expensive. However, 67% of those surveyed believed the Ucits structure to be safer than offshore funds.

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