Komfie Manalo, Opalesque Asia:
From Komfie Manalo, Opalesque Asia:
After Goldman Sachs’ successful launch of a "hedge fund for the masses" in May that allowed retail investors to allocate as low as $1000 into the once exclusive hedge funds space, more investment banks are reported to be interested in offering the same portfolio to their clients.
According to a report by CNBC, Amy Bensted, head of hedge fund research at alternative asset data provider Preqin, investment banks, including Merrill Lynch and UBS are in the process of finalizing details to offer hedge funds for the masses as investors are moving away from traditional wealth managers to provide them alternative investment services.
The report quoted Bensted as saying, "A lot of institutional money is flowing from, say, a Credit Suisse fund to a Bridgewater fund. There has been a move from relying on wealth managers or investment banks to pure asset management shops – so for investment banks, they need to get these smaller investors in and are trying to get them used to hedge fund investing."
With a minimum of $1000, people can invest in hedge funds or alternative investments. Bensted noted that retail investors are looking to diversify their portfolios amidst low interest rates in the global markets. The low investment will make it more affordable for some people to invest in hedge funds to diversify their holdings, she said.
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