Thu, Jun 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Survey finds global active long/short investment next trend for European fund managers

Thursday, November 15, 2012
Opalesque Industry Update - For the fourth quarter issue of The Cerulli Edge-Europe Edition, Cerulli Associates conducted qualitative research interviews with 14 pan-European fund groups to canvas their views on product design, distribution, and social media. We targeted captive fund groups with bank or insurance parents and independents with no distribution outlets of their own. We cover active and passive product providers, including those with exchange-traded fund (ETF) and tracker fund ranges.

Where fund groups have gaps in their product line-ups, development efforts are being poured into global strategies, not country funds. Cerulli expects more actively managed global high yield, global equity income, and global absolute return or total return funds to hit the shelves in the next 12 months.

New funds are more complicated. Many planned launches will make use of Undertakings for Collective Investments in Transferable Securities (UCITS) powers. A notable trend is that institutional and retail investors are moving out of long-only positions into long/short strategies.

"The accent is on active management," said Barbara Wall, a director at Cerulli Associates. "We do not anticipate seeing a whole host of global fund brands jumping into the ETF space.”

The greatest potential for fund sales tends to reside in the core European markets, according to interviewees. Germany tops the list, with France and Spain vying for second place. However, Nordic countries are coming up fast.

"While southern Europe was seen as the preferred region for fixed-income products, northern European markets, particularly the Netherlands and Scandinavia, were identified as being better suited to equity and multi-asset products," commented Yoon Ng, a Cerulli associate director.

"On the whole, preferences are for institutional business first, wholesale second, then a dip down from discretionary to guided architecture in advised retail, with mass retail mainly a distant and unfulfilled dream," Wall added.

Other Findings:

Distributor consolidation is a constant refrain across Europe. So far it is only reflected in shrinking figures in Spain and smaller falls in Italy. The bulk of our interviewees report a growing number of distributors for their funds across all other territories.

With increasing brand awareness and differentiation a key part of many managers' marketing strategies, Cerulli is surprised at the low level of social media integration. To leverage its full potential, social media should be integrated across functions, particularly in relation to marketing and corporate communications.

Press release

bc

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: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  4. 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,

  5. 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