Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: Product development for retail alternatives is on the rise: Where is the demand coming from?

Friday, March 26, 2010
Opalesque Industry Update - Product development for retail alternatives is on the rise, but where is demand coming from? Cerulli's latest research on retail alternatives examines the product development activity spurring growth in this space and sheds light on the demand drivers.

“Most asset managers view the need for investors to optimize the risk-adjusted return of their portfolios as a significant driver behind developing these products. To some extent asset managers' conviction that alternative investments will play a key role in portfolio construction stems more from a perceived need in the market than actual demand,” explains Pamela DeBolt, lead analyst on Cerulli's latest report entitled Cerulli Quantitative Update: Retail Alternative Producsts and Strategies 2010.

Even though many investors aren’t directly demanding these products, some advisors are, and asset managers agree that alternatives are the next step for product line extension. “Our research shows that many asset managers have plans for at least some portion of their new product development to consist of these vehicles or strategies. Even so, we caution firms to focus on their core competencies, and resist the urge to be all things to all investors,” continues Cindy Zarker, director and head of Cerulli's retail asset management practice.

Cerulli's research explains that to be successful in offering retail alternatives, firms must develop a comprehensive distribution strategy that incorporates education and insight on what these strategies and vehicles are, and how to use them by advisor practice type, channel, and core market.

This is Cerulli's first annual report dedicated to the retail alternative space. It provides a comprehensive look at alternative mutual funds, ETFs, collective trust funds (CTFs), hedge funds, and structured products.

These findings and more are from Cerulli Quantitative Update: Retail Alternative Producsts and Strategies 2010. - KM - Source

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1