Thu, Jan 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: European managers brush off emerging market debt woes

Wednesday, July 24, 2013
Opalesque Industry Update - With central bank statements dictating fund flows, traditionally risky strategies are laid bare. However, manager conviction in emerging market debt (EMD) strategies is not lost, according to the July edition of The Cerulli Edge - European Monthly Product Trends.

"The recent pummeling that EMD received has undoubtedly shaken some investors and the next few months could prove difficult for EMD managers," commented Barbara Wall, director at Cerulli Associates. "A clear philosophy is critical. Managers who ignore so-called hot money movements are those that will be selling in five years' time."

There is plenty of evidence to demonstrate sustained interest in EMD. At a Cerulli asset manager roundtable event 14% of the attendees said that EMD was likely to win the most mandates from sovereign wealth funds over the next 12 months. The majority (64%) said the same of alternatives, while 21% thought emerging market equities was a likely contender.

Yoon Ng, a Cerulli associate director, noted that of the top-10 funds by 2013 sales in EMD, four have associated their brand with the asset class. "Several significant soft closures from the likes of Aberdeen, First State, and Franklin Templeton have left a gap in the market that other groups are looking to fill," she added.

Other Findings:

• European providers have delisted a record 231 exchange-traded products (ETPs) in the first half of the year, with many issuers justifying the move as allowing them to better focus on liquidity. The growth of the ETP market over the past few years has resulted in too many similar or very small products; fund rationalization is the next logical step.
• Institutional investors and discretionary buyers have an appetite for new investment strategies, while looking to diversify their manager base. Cerulli believes that Swiss private banks and funds of funds in particular are going out of their way to find innovative strategies for their clients.
• Cross-border U.K.-domiciled funds garnered €1.5 billion (US$1.96 billion) of NNF in May, the second-largest figure after Luxembourg-domiciled funds. U.K. YTD sales amounted to €8.3 billion, making it the third top-selling market after Luxembourg and Ireland. To cement its position as a cross-border center, Ireland is targeting Asian managers to grow its non-European UCITS marketshare.

press release

www.cerulli.com

Bg

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. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalauMor Management in New York

  4. …And Finally - Prison restaurant is the best in Cardiff[more]

    From Orange.co.uk: A restaurant at a prison staffed entirely by inmates has been ranked as the best in Cardiff by diners. The Clink Restaurant at HMP Cardiff - which is open to the public - has been ranked number one on TripAdvisor out of 946 eateries in the Welsh capital. Diners who pos

  5. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report