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Benedicte Gravrand, Opalesque Geneva: The latest Alternative Investment Survey from Morningstar and Barron’s reveals that growth rates for alternative funds have slowed but still remain the highest compared to any other Morningstar Category. Alternative fund launches reached their highest level in 2014, and multi-strategy funds were a top choice for allocations among both institutions and advisors.
Fund companies continued to launch funds at a record clip in 2014, many of which in the multi-alternative, long/short equity and non-traditional-bond categories. "The contrast of increasing fund launches against softening flows suggests that currently supply may be outstripping demand," the report says. However, investors’ enthusiasm for multi-strategy, long/short equity, long/short debt, and managed futures strategies, may mean a future pick-up in asset flows.
According to HFR, hedge fund launches totaled 1,040 for 2014, a decline of 20 funds from the 1,060 funds launched in 2013 and well below the peak of 2,073 funds launched in 2005.
The survey also found that while institutions expect to ease on their investments in alternatives in the next five years, advisors might step up theirs. "Institutions, long at the vanguard of alternative investing, may be tempering their enthusiasm as a result of fees, lockups, and poor transparency in traditional ...................... To view our full article Click here
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