Wed, Dec 13, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Alternative mutual fund assets in Asia up about 6% higher in 2013 from previous year

Monday, January 06, 2014
Opalesque Industry Update - Alternative mutual fund assets under management (AUM) in Asia ex-Japan totaled US$20.7 billion as of September last year, about 6.1% higher than at the end of 2012.

Still, AUM in this space has mostly been on a slow uptick since 2009. Cerulli Associates believes that these allocations have primarily been driven by institutional and, to some extent, high-net-worth investors, rather than retail investors.

Rising investor appetites for alternatives and regulators' initiatives to develop their domestic alternatives landscapes have spurred things along. Institutional interest is underpinned by a burgeoning asset base and an increasing need for portfolio diversification, potentially higher yields, stable income, and as an inflation hedge.

Although alternative allocations are still small at most institutions, often accounting for less than 10% of their overall portfolios, it is notable that they are rising steadily. For example, Korea Investment Corporation (KIC) had nothing in alternatives in 2008, but by 2012 it had allocated nearly 11% of its assets to alternatives, including private equity, hedge funds, real estate, commodities, and special investments.

Recognizing institutions' growing taste for alternatives, some global fund houses traditionally focused on long-only assets are stepping up their alternatives capabilities.

There were notable acquisitions last year: Franklin Templeton in June bought the remaining 80% stake in Pelagos Capital Management, which manages a commodities, managed futures, and hedge fund replication strategy, while BlackRock announced in May an agreement to purchase MGPA, a London-based private equity real estate manager.

However, the path of institutions toward alternatives will likely remain slow. "For one, they will need time to integrate the different arms and fully build up alternative investment capabilities, to the extent that they can rival pure-play private equity or real estate management firms," says Chin Chin Quah, a senior analyst at Cerulli Associates.

press release from Cerulli Associates Asia Pte Ltd

www.cerulli.com

Bg

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. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans