Mon, Jun 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: Competition intensifies with alternative managers entering the retail space

Wednesday, July 24, 2013
Opalesque Industry Update - According to new research from Cerulli Associates, a Boston-based global analytics firm, the competition within the liquid alternative space has intensified with alternative managers entering the retail space.

Alternative Products and Strategies 2013: Identifying Enduring Opportunities in Complex Markets is a comprehensive sourcebook for asset managers that manufacture and distribute alternative products in the U.S.

"Demand for alternative assets has heated up. Investors and advisors look to these assets to provide portfolio diversification, enhanced returns, and to manage risk," states Pamela DeBolt, senior analyst at Cerulli Associates.

Over the past decade, more traditional asset managers have been steadily crossing over into the alternatives space. Firms are developing alternative asset products or acquiring alternative asset businesses to augment their traditional fund offerings and diversify their revenue sources.

"As investors' appetites for alternative investments continue to grow, asset managers have been broadening the options available," explains Michele Giuditta, associate director at Cerulli Associates. "Asset managers are developing alternative assets in a liquid '40-Act mutual fund format for retail investors."

Opportunities for hedge fund managers to cross over into the liquid alternative mutual fund space have accelerated since the financial crisis of 2008.

Cerulli research shows that most firms have built their alternative businesses internally, while one-third have expanded into alternatives through hiring subadvisors. In 10 years, managers surveyed by Cerulli anticipate that on average, alternative mutual fund assets will account for 13.6% of total mutual fund assets, up from 2.2% at the end of 2012.

"Managers should be aware of the unique distribution requirements of alternative funds versus traditional funds," Giuditta continues.

press release

www.cerulli.com


Recent related coverage:

18.07.2013 Infovest21 study shows trend of more big names launching 40 Act funds

17.07.2013 Blackstone to launch first alternative investment-focused mutual fund

25.06.2013 Hedged mutual funds become the dominant vehicle for advisors and institutions looking at alternatives

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. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  2. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  3. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  4. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  5. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.