Trendscout news issue 25 - Interest in Flexible Allocation Funds continues to cool down

16. November 2018

Interest in Flexible Allocation Funds continues to cool down

A difficult market environment has had a detrimental effect on some heavyweights within the Multi-Strategy (Liquid Alternatives) sector.

There are not many flexible allocation funds that have developed positively in recent quarters, and even longer-term results are often not outstanding. Investors correspondingly showed less interest in such products. This was also felt by some heavyweights, especially those with recent weak performance.

Carmignac Patrimoine suffered most from the falling attention amongst French and Belgian investors, as well as investors served by Global Financial Institutions and Swiss Banks. The interest in JPM Systemativ Alpha is very subdued, public channels showed hardly any interest.

Even major funds with somewhat more stable performance saw declining interest: M&G Optimal Income experienced falling attention especially among investors domiciled in Spain, France, Italy and Switzerland, while Pictet TR Diversified Alpha generated less interest among Spanish and Swiss investors, particularly through European ex Swiss banks.

Document downloads for Multi-Strategy (Liquid Alternatives) shown in percent of all downloads for all categories over 2 years within European and Asian sales channels

Other Trendscout highlights

  • First signs of a pickup in interest for emerging markets equities was driven by ETFs.
  • Attention for “low carbon” ETFs launched by French providers Amundi and BNP is on the rise, driven by German investors.
  • Interest in Italian government bond ETFs from Italian and British investors stays elevated.

Categories gaining attention

  • Equity World
  • Bonds World Aggregate
  • Equity Switzerland

Categories losing attention

  • Equity Technology
  • Equity Health Care
  • Equity Asia/Pacific ex Japan

Funds gaining attention

  • iShares Core MSCI World UCITS ETF
  • Robeco High Yield Bonds
  • Robeco Global Premium Equities
  • Invesco Pan European High Income
  • Vanguard S&P 500 UCITS ETF

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