05/10/2011 Author: Will Wainewright

Aquila Capital Ucits sees rapid Q2 inflows

A Ucits CTA fund launched by Aquila Capital, the German alternatives firm, has won inflows from investors totalling $130m since opening in May, HFMWeek has learned.

The popularity of the fund, which won distribution approval in the UK in September, suggests managed futures funds continue to fare well with investors in times of market uncertainty. Inflows from Germany-based investors, a traditionally difficult source of investment for hedge funds, were described as “significant” by a spokesperson.

Aquila’s managing director, Roland Schulz, said: “As was the case in 2008, which saw the height of the financial crisis, we have also continued to see significant inflows of assets during the past turbulent weeks and months.”

He added that inflows into Aquila’s AC Risk Parity 7 and 12 Funds, which were among the first Ucits III absolute return funds to launch in 2008 with daily pricing and liquidity, were also positive: “The funds have now reached a combined value of over $1.6bn,” he said.

The fund has returned 9.44% since launch, with a notable gain of 9.88% in August – a month which saw many funds failed to avoid negative performance. The fund has fees of 1.75/20, and requires a minimum investment of €0.5m ($0.68m).

The news comes a week after HFMWeek revealed that SW Mitchell Capital, the $2bn long/short European specialist, is on the verge of soft-closing the Ucits fund it launched less than four months ago after recording strong inflows to the $200m-capped strategy.

Jamie Carter, partner at SW Mitchell, said demand for Ucits products was high at the moment. “Interest from London has been high and we have also had interest from Italian and Spanish investors,” he said.