Liquid Alternative Funds – Global Flows and Ranks
Following from our recently published “Periodic Table of Fund Flows,” we have created a Chartbook exploring the flow dynamics of liquid alternative funds – one of the fastest growing categories since 2008. These 25 pages explore ‘liquid’ funds categorised as ‘Alternative’ that are distributed in the U.S. (40 Act) and in Europe/Cross Border (Ucits).
‘Liquid’ Alternative funds have been at the top of global fund flow charts. While passive products continue to eat into the flows of ‘core’ equity and fixed income, alternative funds are all about active management. Their managers are expected to use a high degree of investment freedom to generate returns. That flexibility and the potential to provide diversified return profiles has attracted an increasingly large set of investors.
We believe that investors must use a ‘non traditional’ framework to understand alternatives – highly flexible ‘multi-asset’ or equity strategies employing cash strategically warrant consideration. Managers offering these strategies must educate investors on opportunities to balance ‘alternative’ return streams with liquidity.
Even for those managers not offering or considering offering an ‘alternative’ type of strategy, the developments here are important to understand as, in many ways, they are indicative of a reshaping of the industry.
View below or download here.
Propinquity_Liquid Alt Funds_Flow Chartbook