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Alternative Market Briefing

Onshore US retail investors choose alternative mutual funds for their non correlation attributes

Tuesday, December 13, 2011

amb
Andrew Rogers
By Beverly Chandler, Opalesque London:

A success story from 2011 lies in the work Gemini Fund Services has been doing with launching alternative registered mutual funds. The American investing public love them and Andrew Rogers, President of Gemini Fund Services reports that business is booming for them. "We have had a great 2011" he says. "We specialise in alternative registered mutual funds and so we have seen many managed futures funds launch this year – we have done 10 with $ 2.5bn under management."

In total, so far this year, Gemini has launched 58 mutual funds and nine hedge or private equity funds. Rogers says: "People are looking for alternative investments, investments that are not correlated with stockmarkets."

While equity market returns are actually flat this year, Rogers reports that investors feel like they are down because of the huge amount of volatility the year has seen.

"This is a generation of investors that experienced 2000 and 2008 and they are hesitant to invest in the stockmarket" says Rogers. "This is a long term trend that investors are reticent to invest in equity mutual funds."

After the high volatility of the last couple of years, investors are looking for something different. "Conservative is cool and people will take less returns for less volatility."

Another trend that Rogers is seeing is the formation of a lot of tactical mutual funds using indices or exchange......................

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