•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

From the Opalesque team: In January and February 2008 Financial Research Corporation (FRC) conducted two comprehensive surveys to determine perspective and gauge future expectations of retail investment advisors and asset managers on actively managed mutual funds and alternative investment vehicles. Inclusive in this survey are the expectations and reactions to 130/30 funds.

The survey revealed that while asset managers were bullish on the funds’ future in investor portfolios (65% believed that 130/30 funds make sense for investors with a high risk tolerance), investment advisors anticipate the funds will only succeed in carving out a small role in the marketplace (30% believed 130/30 funds made sense for investors with high risk tolerances and 15% believe the vehicles are a fad and will eventually disappear over time).

At the end of 2007 only 6 retail 130/30 products had track records of longer than 12 months, and FRC notes that the funds are so new few advisors have had the opportunity to incorporate them into their businesses. As such the report indicates that although investment advisors did not see strong growth for the vehicles, this opinion “is not an indictment that the structure will never catch on in the marketplace, but rather a case in which education efforts have not kept pace with the product development activity.”

In the 8 months since the survey 130/30 products have managed to hold up better tha......................

To view our full article Click here