Sat, Oct 25, 2014
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   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t