Thursday, 24 July 2014
Last updated 1 hour ago
Feb 10 2011 | 9:22am ET
Funds of funds are adding more “nimble” managers to their portfolios, favoring small to medium-size managers, according to the latest survey from Infovest21.
The hedge fund information services company polled 62 funds of funds with total AUM of $104.6 billion and found 41% of those surveyed were adding more nimble managers to their underlying portfolios. Another 38% said they had become more liquid/provided more liquidity.
Lois Peltz, president of Infovest21, said: “While one-third of the funds of funds don't have a preferred asset under management range for underlying managers, the average range of those that have a preference ranged from about $140 million on the low end to $1.4 billion on the high end."
The survey also revealed that the average asset size of the fund of funds organization responding was $1.7 billion. The respondents said, on average, at least $1.4 billion is needed to "survive and thrive."
About half of those surveyed have seen an increase in assets under management while 18% have seen a decrease over the past year.
High net worth/family offices make up over 50% of the average investor base while financial institutions comprise 18% and pensions 14%. Foundations, endowments and sovereign wealth funds comprise the remainder.
Over 60% of the average fund of funds investor base is located in the U.S. with another 18% coming from Europe and 5% from the UK. Japan, Asia, Middle East, Canada and Australia account for the remainder.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…