Sat, Sep 5, 2015
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. Opalesque Exclusive: New Detroit-based CTA seeks to take advantage of coming volatility[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging manager has just set up his one-man shop in the city of Detroit. Synchronicity Futures,

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  4. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

  5. Launches - BlackRock’s McKenna starts hedge fund with $270m, Ex-BlueBay fund managers Phillips, Fayman to launch hedge fund in 2016, Dallas lawyer, Wall Street-savvy doctor team up to form biotech-focused hedge fund[more]

    BlackRock’s McKenna starts hedge fund with $270m From Bloomberg.com: BlackRock Inc. has started an event-driven hedge fund one year after hiring Harvard Management Co.’s Mark McKenna to run the strategy. Global Event Partners, which seeks to profit from corporate events such as takeovers

 

banner