Mon, May 25, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: Multi-asset investment strategies attract interest in Europe, but managers still cautious

Thursday, March 25, 2010
Opalesque Industry Update - Interest in multi-asset investment strategies in Europe has never been higher, according to the new Cerulli Special Report: European Multi-Asset Investment Strategies. Total assets using a multi-asset approach stood at an estimated €848 billion (US$1,191 billion) as of 2009. Funds sourced from institutional investors account for €341 billion as of September 2009, based on Cerulli’s multi-asset manager survey conducted in January 2010, riding on the back of rising interest in fiduciary management and diversified growth funds. In the retail space, managers are seeing a resurrection of demand for new balanced funds that invest in a range of asset classes including alternatives. These flexible allocation funds registered a strong 5-year compound annual growth rate (CAGR) of 23.1% to reach €115 billion as of 2009. Cerulli estimates the 5-year CAGR to 2014 for the retail segment, including both traditional and new balanced funds, to stand at 8.0% or €746 billion.

“Multi-asset investments are most attractive to investors who lack resources for specialization as it is presented as a convenient, one-stop solution. Cerulli identifies the mass retail and affluent investors, the DC market, and small-to-medium sized pension funds as three key segments that possess the greatest asset gathering opportunities,” said Shiv Taneja, the managing director of Cerulli’s international practice.

Though the recent market meltdown created impetus for multi-asset strategies, an equally swift recovery would challenge its growth, because managers are cautious about the long-term viability of the approach. “Multi-asset investments tend to garner interest in every market downturn because of its flexibility and risk mitigation abilities, however the challenge is to ensure sustained demand especially when equity markets rally,” said senior analyst Yoon Ng, the report’s principal author.

Global fund managers are best positioned for the multi-asset business, because they can leverage existing scale and product offerings. However, skill and not scale is crucial to success, which means boutiques could do equally well by specializing in key asset allocation functions and outsourcing secondary roles. Across Europe, the U.K. holds the greatest opportunity for multi-asset gathering opportunities both in the retail and the institutional space. This is due to investors’ greater risk appetite and receptiveness to new products.

These findings and more are available in the latest Cerulli Special Report: European Multi-Asset Investment Strategies. - KM - Source

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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner