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Komfie Manalo, Opalesque Asia: The evolution of funds of funds reflects the changing roles of
traditional fund of funds in the investment landscape, said a survey by
Peltz International. The annual survey also found that there fewer funds
of funds but, on average, they have more assets under management. The
average asset size of the organization responding was $8.0bn.
The respondents said, on average, at least $4.4bn is needed to "survive
and thrive."
Lois Peltz, who authored the report stated, "Interestingly, 60% of those
surveyed refer themselves as funds of funds while 15% now use the term
'customized solution provider.’ Another 10% refer to themselves as
'asset managers’ and 5% use the term 'outsourced chief investment
officer.’ These labels reflect the ongoing evolution and changing roles
played by the traditional fund of funds."
The survey also found that reputation or pedigree is very important
amongst fund of funds. A typical fund of funds has 197 investors, the
study funds, with high net worth/family offices making up 64% of the
average investor base while pensions comprise 13%. Endowments and
foundations account for about 3% and 5% of the client base respectively.
Financial institutions account for 7% while sovereign wealth funds,
insurance companies and charitable organizations account for 4%, 3% and
1% respectively.
The average number of underlying managers is 61, Peltz said and added
that commingled funds comprise about 66% ...................... To view our full article Click here
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