Thu, Jul 31, 2014
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. Opalesque Exclusive: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  4. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  5. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by