Liquid alternative investments growing fast
08 September 2014 London
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The number of investors allocating to liquid alternative investments has grown to 51 percent year-on-year, according to a study from Deutsche Bank.
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 allocations.
Liquid alternative investments are the fastest growing part of the asset management industry, with net inflows into liquid alternatives predicted to grow by 44 percent over the next year that translates to $49 billion in new flows.
Alternative UCITS assets have grown over 40 percent annually since 2008 and the fundamental equity long/short, event driven and global macro are the most popular strategies for investors allocating to alternative UCITS and alternative ’40 Act mutual funds.
Alternative mutual funds in Europe have grown by 38 percent annually during this period, compared to 9 percent for US mutual fund industry.
The hedge fund industry has grown 13 percent and the wider European UCITS industry only 2 percent.
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 $804 billion in hedge fund assets and 86 global hedge fund managers representing $6 trillion in firm wide assets.
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 allocations.
Liquid alternative investments are the fastest growing part of the asset management industry, with net inflows into liquid alternatives predicted to grow by 44 percent over the next year that translates to $49 billion in new flows.
Alternative UCITS assets have grown over 40 percent annually since 2008 and the fundamental equity long/short, event driven and global macro are the most popular strategies for investors allocating to alternative UCITS and alternative ’40 Act mutual funds.
Alternative mutual funds in Europe have grown by 38 percent annually during this period, compared to 9 percent for US mutual fund industry.
The hedge fund industry has grown 13 percent and the wider European UCITS industry only 2 percent.
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 $804 billion in hedge fund assets and 86 global hedge fund managers representing $6 trillion in firm wide assets.
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