Wed, Oct 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Understanding the Great Rotation, Part 3

Friday, November 15, 2013

amb
Alexander Ineichen
Benedicte Gravrand, Opalesque Geneva:

This series of articles explores the concept of the Great Rotation, which was anticipated to be one of 2013’s themes, its reality and how it is viewed. Here we see that it is not just about investors rotating out of bonds and into equities.

Part 1 was in Wednesday’s AMB, Part 2 in Thursday’s. Part 4 will be published on Monday (Nov. 18th).

Two opposing rotations playing out simultaneously

Morgan Stanley’s latest blue paper, out last month and called "Great Rotation? Probably not," says rotational flows from bonds to equities will be more subdued than many expect.

"Our bottom-up analysis of $89 trillion of global AuM [about 60% is institutional money and 40% retail] suggests there are major structural headwinds to the 'Great Rotation’ story," the paper says, which adds that the concept of a 'Great Rotation’ simplifies nuanced demand dynamics at play.

Indeed, the authors think two opposing rotations may be playing out simultaneously: institutional investors are de-risking while retail investors are re-risking.

Since January this year, retail and HNW investors have reduced cash and increased r......................

To view our full article Click here

Banner

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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is