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Beverly Chandler, Opalesque London:Cerulli's latest research shows that asset managers are focused on alternative investments, and their annual coverage of this topic quantifies the extent to which they expect their AUM to grow in these products, which is 50% or more over the next 3 years.
Additionally, Cerulli's research shows that asset managers predict alternative mutual funds to make up 9.7% of mutual fund assets in five years, and rise further to 15.8% of assets in 10 years.
"We expect alternative mutual fund asset growth to continue, but due to the overall size of the mutual fund market ($8 trillion), it may be a slow climb to represent more significant marketshare," comments Matt Pickering, analyst and contributor to Cerulli's annual study of alternatives and ETFs.
"As the use of alternative mutual funds grows, we will likely see more granularity in the discussion of the various types of funds that comprise the universe. For example, commodities are often discussed separately from the wider alternative universe given their overall size and penetration in the market compared to other alternative categories. Morningstar currently classifies commodities as an asset class separate from alternatives. Moreover, alternative categories will likely have different rates of success, and some will possibly decline (i.e., 130/30 funds have due to poor performance in past ...................... To view our full article Click here
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