Change management for fund managers

Looking to the past as a way to gauge the likely direction of the future is a popular exercise in the first quarter of every year. It's a natural desire for people to want to improve on their personal and professional lives; taking stock of where they are, making changes where needed, and reinforcing good habits. Alternatives managers are no different, and despite some opposing opinions, they are people too.

Industry analysts throughout the financial markets annually capture these sentiments in surveys, providing investment managers a blueprint with which to plan some needed changes. Ernst & Young's 2016 Global Hedge Fund and Investor Survey offers an interesting snapshot into investor's attitudes at the close of 2016: Differentiation has become the touchstone of the future, and those funds that strategically embrace change for the right reasons and modify their business model in a way that responds to investor demands will be the ones that prosper going forward. While the survey is comprehensive,covering a wide range of topics and opinions, the five areas selected below provide managers with key issues to take stock of in 2017.

Alternatives are still imperatives EY survey: Almost half of investors are continuing to actively seek out non-traditional products.

Although not shy in voicing their frustrations and disappointment with most alternative products, investors are nevertheless more committed than ever to being invested in the sector. Perhaps they have finally truly embraced the mantra of diversification and risk modification these products are meant to provide to portfolio management. While they still want to see wholesale improvements within alternative offerings, they are believers in the long-term allocation process, and managers must work to win them.

More of same is kiss of death EY survey: Managers are facing the imperative to differentiate not......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.