Opalesque Industry Update - Deutsche Bank study revealed the true extent of demand for liquid alternative investments, with the percentage of participating investors allocating to such products up from 28% to 51% year-on-year. The study - From Alternatives to Mainstream (Part Two) saw almost three quarters of alternative UCITS investors and nearly two thirds of investors into alternative 40 Act mutual funds planning to increase their allocations. Liquid alternative investments are now the fastest growing part of the asset management industry. Alternative UCITS assets have grown over 40% annually since 2008, whilst the hedge fund industry has grown 13% and the wider European UCITS industry only 2%. Alternative mutual funds have grown by 38% annually during this period, compared to 9% for US mutual fund industry. Hedge funds have moved into the mainstream marketplace at an accelerated pace, bringing new products to market and driving asset growth. Key findings of the study, which surveyed both investors and managers, include:
Daniel Caplan, European Head of Global Prime Finance at Deutsche Bank, said, The growth of liquid alternatives is a very real opportunity for investors who have previously been unable to access hedge fund strategies to do so in a liquid and regulated structure. Anita Nemes, Global Head of Capital Introduction at Deutsche Bank, said, "Liquid alternatives are the fastest growing segment of the asset management industry. This presents a significant opportunity for investors to access better risk-adjusted returns, and also for hedge fund managers who are increasingly becoming solution providers to their investors." The study surveyed 212 investor entities worldwide managing more than $804bn in hedge fund assets and 86 global hedge fund managers representing $6tn in firm wide assets. |
Industry Updates
Deutsche Bank study shows investor demand fuelling dramatic growth of hedge fund liquid alternatives
Tuesday, September 09, 2014
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