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Bailey McCann, Opalesque New York: Investors and the financial commentariat often call time of death on fund of funds for one reason or another. They cite fees, a limited edge in manager selection, or outmoded structures but still fund of funds persist. For the fund of funds firms that have been able to show success since the crisis, principals say adaptation is the key.
"These days more tailored solutions are available within commingled capital, for example, pooled strategies where investors can opt-out of certain exposures on a client by client basis within the pool," Paul Ward, Managing Partner, Pantheon tells Opalesque. "Other market innovations could include shortening the life cycle of vehicles or investment periods."
Pantheon offers a range of fund of funds solutions on the private equity side, most recently closing a $1 billion global infrastructure investment program in a mix of comingled and separate accounts. Ward notes that there is still interest in the fund of funds structure despite persistent narratives about fees after the crisis. "There is still a strong investor focus on fees. A lot of consultants have responded by doing a low cost offering where they consult on investments but don't execute on them. We try to focus people on the value proposition of investments, reporting, risk management, research, service and, of course, net performance."
This viewpoint was echoed at our recent ...................... To view our full article Click here
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