•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

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