Mon, Jul 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Survey finds global active long/short investment next trend for European fund managers

Thursday, November 15, 2012
Opalesque Industry Update - For the fourth quarter issue of The Cerulli Edge-Europe Edition, Cerulli Associates conducted qualitative research interviews with 14 pan-European fund groups to canvas their views on product design, distribution, and social media. We targeted captive fund groups with bank or insurance parents and independents with no distribution outlets of their own. We cover active and passive product providers, including those with exchange-traded fund (ETF) and tracker fund ranges.

Where fund groups have gaps in their product line-ups, development efforts are being poured into global strategies, not country funds. Cerulli expects more actively managed global high yield, global equity income, and global absolute return or total return funds to hit the shelves in the next 12 months.

New funds are more complicated. Many planned launches will make use of Undertakings for Collective Investments in Transferable Securities (UCITS) powers. A notable trend is that institutional and retail investors are moving out of long-only positions into long/short strategies.

"The accent is on active management," said Barbara Wall, a director at Cerulli Associates. "We do not anticipate seeing a whole host of global fund brands jumping into the ETF space.”

The greatest potential for fund sales tends to reside in the core European markets, according to interviewees. Germany tops the list, with France and Spain vying for second place. However, Nordic countries are coming up fast.

"While southern Europe was seen as the preferred region for fixed-income products, northern European markets, particularly the Netherlands and Scandinavia, were identified as being better suited to equity and multi-asset products," commented Yoon Ng, a Cerulli associate director.

"On the whole, preferences are for institutional business first, wholesale second, then a dip down from discretionary to guided architecture in advised retail, with mass retail mainly a distant and unfulfilled dream," Wall added.

Other Findings:

Distributor consolidation is a constant refrain across Europe. So far it is only reflected in shrinking figures in Spain and smaller falls in Italy. The bulk of our interviewees report a growing number of distributors for their funds across all other territories.

With increasing brand awareness and differentiation a key part of many managers' marketing strategies, Cerulli is surprised at the low level of social media integration. To leverage its full potential, social media should be integrated across functions, particularly in relation to marketing and corporate communications.

Press release

bc

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. Already above average, Singapore high-networth investors add hedge funds and alternative investments[more]

    Komfie Manalo, Opalesque Asia: An above-average proportion of Singaporean HNW wealth is allocated to alternative investments - the majority of which is held in hedge funds, according to the latest research by ReportLinker. In its report entitled, Wealth in Singapore: HNW Investors 2017

  2. Launches - Crypto boom: 15 new hedge funds want in on 84,000% returns, Crypto madness is striking VCs as Union Square analyst leaves to start new fund[more]

    Crypto boom: 15 new hedge funds want in on 84,000% returns From Forbes.com: With 43 projects raising $1.2 billion in initial coin offerings since May 1, according to Nick Tomaino's The Control, and with stratospheric returns for so many ICOs -- 82,000% for Ethereum, 56,000% for IOTA, 44,

  3. FinTech - The machines are coming... Elon Musk's grim warning, Tezos' $232 million ICO may just be the beginning, A gentle introduction to Initial Coin Offerings (ICOs), Billion dollar tokens, ICOS & crazy market swings WTF is going on!?, How AI is changing the way we invest, How the tech revolution is bringing flip-flops and beanbags to Wall Street, A 'machine-learning' approach to venture capital[more]

    The machines are coming... Elon Musk's grim warning From Tenplay.com.au: Tesla chief Elon Musk has called on US Governors to take 'decisive' action to curtail "the greatest risk we face as a civilization": Artificial Intelligence, or AI. Speaking at a meeting of the National Governor Ass

  4. News Briefs – Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9%, Rwanda: Global hedge fund to increase investments[more]

    Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9% Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert's hedge fund, the retailer said Monday. Sears' stock climbed about 9 percent higher Monda

  5. Despite current limits, robo-advisors will be preferred investment solution for retail, gain importance for affluent and high net worth[more]

    Matthias Knab, Opalesque: Flynt, a Swiss FinTech focusing on proprietary technology platform for private and institutional clients, has published a brief paper on "Investing in the world of robo-advice and passive instruments". As investors will become more reluctant to pay for investment advi