Thu, Aug 17, 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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Other Voices: Crisis risk offset; about time?[more]

    This article was authored by Russell Barlow, global head of hedge fund solutions at London-based Aberdeen Asset Management. Like the ubiquitous force of gravity, when financial markets rise they must fall. The quest

  3. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  4. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  5. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos