While the growth of passive ETFs has forced active fund managers to work harder for business, they are still expecting to reach 9% annualized growth over the next five years, according to Ernst & Young’s 2014 Global Regulated Funds Survey.
“Many managers also see ‘solutions-based’ products (absolute return strategies, lifestyle products and guaranteed capital products), with a clear focus on client expectations and desired outcomes, as additional sources of growth,” says the survey.
Active fund managers are exploring new strategies instead of new product categories
Even though we’ve heard a lot about smart beta funds and other low cost products, the introduction of new product types was only the third most popular approach to attracting more capital in developed markets. Managed funds were much more likely to experiment with new strategies and strategy classes or simply push some of their more successful existing products, though the ranking flips in Asia and Latin America. The survey also found that new product development takes longer in the US than it does in other regions (6 – 12 months instead of 3 – 12).
Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%. Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More
Still, it seems clear that managed funds are just trying to outperform passive ETFs, they are positioning themselves to offer services that aren’t easily replicated. Asked to name the most imp