Difficult markets attract assets to liquid credit strategies
Tue Mar 6, 2012
In an occasional series about under-represented strategies within the UCITS wrapper, Joy Dunbar editor of Absolute UCITS, explores the potential opportunities in the credit sector.
Credit was the most popular asset class in terms of
attracting assets into new funds in the alternative UCITS
sector in 2011. The Absolute UCITS global alternative
UCITS new fund survey showed that there were six new credit
funds launched in 2011.
More than $1.3 billion poured into new credit funds last
year, according to the Absolute UCITS global new fund
survey for 2011. A trio of UCITS credit funds topped the
largest new funds for 2011 - BSF European Credit Strategies,
Pictet TR-Kosmos and Schroder GAIA CQS Credit (see below
There are now around 15 credit funds trading that use the UCITS
wrapper, according to the Absolute UCITS database. In
Europe, where the offshore sector is more established and not
constrained by liquidity and certain regulatory requirements,
credit returned an average of 8.5% in 2011.
The weak economic environment and risk aversion across
financial markets appears...
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