A decent proportion of product development for both retail and institutional distribution will be focused on international strategies.
Research by analytics firm Cerulli Associates indicates that asset managers are setting aside 25% of their retail product development for global strategies, up to 37% on the institutional side.
The firm also found that over the next three years, global equity allocations are expected to increase regardless of investor type, while U.S. equity allocations are expected to decrease.
In another part of Cerulli’s June edition of ‘Monthly Product Trends’, the firm found that inflows into passive mutual funds have offset the outflows from active funds, with active equity funds being the worse hit ($25.3 billion outflows).
While flows into exchange-traded funds have slowed compared to earlier parts of the year, they still contributed 0.3% in organic growth for the month, a sizeable portion of the 0.5% overall growth.
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