Trend for alternative investments gathers momentum

MomentumMore research published earlier this week suggested that investors are increasingly seeking alternative investments. A McKinsey report said alternatives had made a “stunning” comeback, reaching a record of $6.5 trillion (€5.2 trillion) in assets under management globally by year-end 2011, and that growth is expected to continue. Future growth in alternative investments will be driven by increasing allocations by institutional investors and the movement of alternatives into the retail mainstream, said McKinsey, adding that US institutional investors plan to increase their allocation to alternative investments to 28% of total portfolio assets by the end of 2013 - up from 26% in 2010. Among other sources, the report - which is called The Mainstreaming of Alternative Investments: ‘Fueling the Next Wave of Growth in Asset Management’, and defines alternative investments as hedge funds, private equity, real estate, infrastructure and commodities – was based on global surveys of institutional investors and asset managers, and interviews with senior executives at leading traditional asset management firms. Earlier this month Russell Investments published a survey that found institutional investors anticipated rising allocations to most alternative strategy types in the next one to three years. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.