Wed, Jun 20, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

European fund of funds to grow by $250bn, multi asset absolute return managers to lead the pack - Cerulli

Friday, September 10, 2010
Opalesque Industry Update - According to The Cerulli Report: European Funds of Funds, the European FOF sector will expand by almost €250 billion by 2014. The winners in the race to capture assets will be multi-asset absolute-return managers and aggressive FOF asset allocators.

Consolidators with the resources, economies of scale, and asset class firepower to run FOFs well will also increase their marketshare. Others will be less fortunate. Too many of Europe's FOFs are poorly designed, struggle with compliance risk, and have failed to attract sufficient assets to be tenable in the long term.

European FOF assets have recovered from the lows of 2008, although Mediterranean markets still suffer from poor sentiment and fund outflows. European assets under management (AUM) will rise from €319.7 billion at the end of 2009 to an estimated €567.5 billion by the end of 2014, a compound annualized growth rate (CAGR) of 12.2%. Paul Burgin, the primary author of the report, says: "Whilst the European picture looks good overall, there are distinct variations in the outlook for each country. The European Union product and distribution landscape is still fragmented as most FOF providers only distribute in home territory."

France is Europe's largest FOF market, yet offers the weakest growth forecast at 8.4% per annum. "The outlook would be rosier if fund groups stopped including too many of their own funds in supposedly open-architecture FOF portfoliosm," said Shiv Taneja, managing director at Cerulli Associates.

"French asset managers may find more potential overseas than at home. Their cross-border ranges could tap the underdeveloped Asian FOF market to good effect," he added.

Regulation is driving change in Italy and the U.K., but in very different directions. Italy's strict interpretation of the Markets in Financial Instrument Directive (MiFID) makes it hard to sell FOFs with their double layers of fees. FOFs could eventually die out. International fund groups must focus their attention on segregated account structures that act as a bespoke alternative.... (press release) Corporate website: Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a