Wed, Apr 8, 2020
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. Investing: Ray Dalio's Bridgewater scales down European short bets after $3.2bn windfall, Here's what top hedge funds are buying in the coronavirus stock market crash[more]

    Ray Dalio's Bridgewater scales down European short bets after $3.2bn windfall From Financial News: Bridgewater Associates, the world's biggest hedge fund, has retreated from shorting European stocks after making an estimated €2.9bn ($3.2bn), as its founder and co-chairman Ray Dalio c

  2. Bill Ackman writes letter to shareholders on coronavirus[more]

    Pershing Square Holdings (PSH)'s Bill Ackman wrote a letter to investors outlining his insight on the coronavirus pandemic in the United States. He revealed that PSH completed the process of exiting the hedges on 23 March, netting a gross $2.1bn for PSH, after turning 'increasingly positive on equit

  3. New Launches: LGPS Central sets up investment grade bond fund, Leeds Equity Advisors aims to raise $1bn for PE fund, RLI Investors to launch European last-mile logistics fund, DBL Partners IV targets $450m[more]

    LGPS Central sets up investment grade bond fund From IPE: LGPS Central, the asset pooling vehicle for eight local government pension schemes (LGPS) based in England's Midlands, has launched a global investment grade corporate bond fund in order to meet its partner funds' needs. The po

  4. Investing: Marathon sees cheap assets amid dislocation in credit, Deerfield's health care buying spree, It's time to buy shares again, says BlackRock, Credit Suisse, Fed is buying credit ETFs but one hedge fund is shorting them[more]

    Marathon sees cheap assets amid dislocation in credit From Bloomberg: Distressed-investment specialist Marathon Asset Management is buying beaten-up debt amid the greatest dislocation in credit markets since 2008, according to Bruce Richards, co-founder and chief investment officer of the

  5. People: Carlyle picks 2 deputy heads for Japan buyout advisory team, Ex-Kleinwort Hambros adviser takes senior role at multi-family office boutique[more]

    Carlyle picks 2 deputy heads for Japan buyout advisory team From PIonline.com: Takaomi Tomioka and Hiroyuki Otsuka were named deputy heads of the Japan buyout advisory team at Carlyle Group. The positions are new, confirmed a spokeswoman for the New York-based private markets investment g