Thu, Apr 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Cerulli finds that capricious markets and rock bottom yields play havoc with institutional portfolios

Wednesday, September 12, 2012

Beverly Chandler, Opalesque London: Latest research from Cerulli Associates in the The Cerulli Edge: Global Edition, September 2012 issue shows that 'capricious markets and rock-bottom yields are playing havoc with institutional investment portfolios’. However, investment managers are responding with product solutions designed to suit a range of risk profiles.

As an example, Cerulli quotes Japanese pension plan sponsors who are gravitating toward emerging markets and hedge funds to address the problem of escalating future benefit payments. The report says: "Although the average percentage of hedge funds in corporate plans is still low (4.89% as of March 2011), the true percentage is probably much higher as some Japanese hedge funds are classified as Japanese equities".

The report reminds global managers who want to target institutional-only business that scale is indispensable as institutional fees are approximately half of retail fees.

Looking west, Cerulli finds that in Europe, more than 90% of institutional investors expect to maintain or increase their allocation to hedge funds over the next few years. While UCITS funds are still the most popular investment approach, Cerulli expects a growing number of institutions to invest in hedge funds directly.

Commenting on other trends in the alternatives segment, Barbara Wall, noted that Infrastructure as an a......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its