Beverly Chandler, Opalesque London: The latest study paper from Global Perspectives examines the growing strength of the managed account platform as an investment structure in the alternatives world.
Shane Brett from Global Perspectives comments that while the industry has existed for some time it has to date been dominated by one established giant – Lyxor. Brett writes: "This is starting to change as increased competition enters the sector from fast growing competitors like UBS’s Liquid Alpha Platform".
Managed Account Platforms work by signing up traditional and alternative managers who then market their funds to institutional investors worldwide. "The catch for managers is that the platforms impose much tighter investment controls around trading, investment allocation and risk management" Brett says. And it is here that the root of the rapid growth of the platform lies.
Brett writes: "Managed Accounts are capitalizing on a major trend in the Hedge Fund industry - the push towards increased checks and controls. The on-going regulatory avalanche across the whole industry has obviously contributed towards this, but in fact the main driver has been Investors themselves.
Investors want to see their investment managed carefully and in a fully controlled environment. They want to ensure Fund Managers are not taking unnecessary risks or engaging in dangerous trading activity. Thi......................