Newsletter

Trendscout news issue 23 - Subdued interest for alternatives to Haywood’s GAM funds

September 21, 2018

Subdued interest for alternatives to Haywood’s GAM funds

While interest in the GAM Absolute Return Bond funds skyrocketed after Tim Haywood's suspension, competing products attracted little additional attention.

Following the suspension of Tim Haywood, document downloads for GAM Absolute Return Bond funds in liquidation quadrupled as current investors, in particular, wanted to get a more accurate picture of the fund. Since the majority of the proceeds were to be repaid to fund investors by the end of September, one would assume that investors and their advisors would start looking for alternatives.

However, the negative headlines and very modest performance for many absolute return bond funds in 2018 seem to dampen appetite for this sector. Most substitutes were unable to benefit from more interest. The few exceptions with increased investor interest include the Absolute Return Bond funds from Credit Suisse and BNY Mellon as well as the Flexible Fixed Income fund from Nordea. The uptick was most pronounced for the BNY Mellon fund driven by Italian investors, while the Nordea Fund also attracted more interest in Southern Europe.

The subdued demand may indicate that investors are more likely to look for investment opportunities in other sectors.

Document downloads for selected funds in the Fixed Income Absolute Return sector shown in percent of all downloads for this peer group over 1 year within European and Asian sales channels

Other Trendscout highlights

  • Demand for Healthcare funds is driven by non-core MIV Global Medtech and CS Global Digital Health.
  • Blackrock’s Dynamic High Income fund has been the newcomer of the year in the Liquid Alternatives space attracting particularly high interest amongst Asian investors.
  • This is another reason why Blackrock is now the most sought-after fund provider in the Liquid Alternatives Space, replacing M&G in July.

Categories gaining attention

  • Equity World
  • Equity Health Care
  • Equity USA

Categories losing attention

  • Liquid Alternatives Multi-Strategy
  • Fixed Income Emerging Market External Debt
  • Fixed Income Euro Short and Mid Term

Funds gaining attention

  • MIV Global Medtech Fund
  • Robeco Global FinTech Equities
  • Allianz GIF - Income and Growth
  • JPMorgan Global Income Fund
  • iShares Core MSCI World UCITS ETF

Free Access to Digital-Advisor and the new Trendscout Report

To give fund houses valuable insights into the competitive situation of their funds, we have implemented a new "Trendscout Report" within Digital-Advisor, fundinfo's expert tool for tailored fund selection. Please find an example here. We are pleased to offer all our Document Dissemination clients now free access to Digital-Advisor. It allows you to evaluate what demand is emerging for your funds, identify your fund's most important competitors and lets you optimise the promotion of your funds. Please contact membersupport@fundinfo.com to activate your login.