Tue, Sep 30, 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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is