Wilshire: Liquid Alternatives Gain $10B in AUM During Third Quarter

Nov 2 2017 | 6:11pm ET

Investors allocated capital to liquid alternative strategies at a faster pace in the third quarter, according to the latest edition of the Wilshire Liquid Alternatives Industry Monitor, although fund liquidations outnumbered launches for the second consecutive quarter. 

Wilshire, a major player in the liquid alts space and home to the Wilshire Liquid Alternative Index and its related subindexes, publishes the report quarterly to provide information on index returns, fund launches and closures, asset changes, and capital flows in the liquid alternatives industry.

AUM in the liquid alternatives universe as tracked by Wilshire increased by $10 billion during the third quarter, a large acceleration from the $3.1 billion seen during Q1. Assets increased during the period through a combination of organic growth, capital flows, and new entrants. Net inflows totaled $3.4 billion. 

Other highlights from the Q3 report:

  • 11 new liquid alternative funds were launched in Q3 2017, including 4 Equity Hedge funds and 1 Multi-Strategy fund. 
  • There were 13 liquidations.
  • For the second quarter in a row, Multi-Strategy funds experienced net inflows of $0.92 billion, which was a reversal of five straight quarters of outflows prior to that.
  • The Global Macro space posted slight inflows of $0.14 billion for the first time in a year. Event Driven funds also experienced slight net outflows of $0.07 billion.

Founded in 1972, Wilshire Associates is an independent investment consulting and services firm that provides plan sponsors, investment managers and financial intermediaries with a wide range of services. Its business units include Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets, and it is home to the Wilshire 5000 Total Market Index. Based in Santa Monica, California, the firm provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately $8 trillion.

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