The number of institutional investors invested worldwide in commodity trading advisers increased more than threefold to 1,067 as of Dec. 31 from 331 at year-end 2008, new research from market tracker Preqin showed.
Despite a performance drop of 0.8% of the Preqin All-Strategies CTA index in 2015, 49% of asset owners surveyed by Preqin said they plan to add, maintain or increase their allocation to CTAs while 5% said they will decrease their CTA exposure. The remaining survey respondents said they didn't invest in CTAs in 2015 and don't intend to in 2016.
The Preqin CTA index rose 1.5% in the first three months of 2016, which coincided with net inflows of $13.7 billion into CTA strategies in the quarter. If the pace of investment into CTA funds is maintained through the end of 2016, net investment inflows could top the net $24.7 billion invested in all of 2015 Preqin research showed. Preqin's asset flow information includes all investors, not exclusively institutions.