Fri, May 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fund of funds face new challenges from investors

Thursday, February 06, 2014

Bailey McCann, Opalesque New York:

Fund of funds in the US and Europe have been dealing with headwinds ever since 2008. As regulation and investor's preference for direct investing has evolved the fee structure and access offered by the fund of funds model makes less sense to savvy institutions. Delegates at the recent Opalesque Geneva Roundtable noted that fund of funds in America are getting bigger mandates, at least in part because of their willingness to carve out niche expertise.

"In the fund of funds industry, the core business relies upon the selection of the most talented hedge fund managers. We all know that. But what the industry players have been figuring out over the last couple of years is that it is no longer enough from an investor standpoint. Fund of funds managers now need to go beyond that, for instance by convincing a manager to evolve under a UCITS format or by being responsible vis-à-vis the fee structure. On this last point, I must stress that I believe that the 2 and 20 structure, especially in Europe, is no longer acceptable," explains Arié Assayag, Global CEO of UBP Alternative Investments.

This focus on fees in Europe may be putting investors at a disadvantage over their American counterparts. "The industry is facing this significant demand from mostly U.S. pension funds or endowments that are going direct. Those institutions basically seem not to care s......................

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. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  2. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  3. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  4. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  5. J.P. Morgan Asset Management launches ultra-short income ETF[more]

    Komfie Manalo, Opalesque Asia: J.P. Morgan Asset Management, the $1.5tln investment management arm of JPMorgan Chase & Co., has launched the JPMorgan Ultra-Short Income ETF (JPST), an actively managed ETF that seeks to provide current incom