Tue, Aug 30, 2016
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new