Fri, Jun 22, 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. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  3. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp