In the wake of historic market losses and epic scandals, a
restless and empowered investor base is demanding greater
transparency and liquidity from managers, while focusing on
absolute returns and uncorrelated investment strategies.
This combination of factors is driving convergence of
traditional and alternative investment products, with investors
pouring more than $110 billion into alternative mutual funds in
the US and Europe in 2009 alone, according to a white paper
released by SEI in collaboration with Strategic Insight.
The paper, Exotic to Mainstream: Growth of Alternative
Mutual Funds in the United States and Europe, evaluates the
opportunities and challenges managers face when launching and
distributing alternative investment strategies in a registered
mutual fund or UCITS format, as the trend toward 'mainstream
alternatives' gains significant momentum.
As evidenced by inflows to these alternative mutual funds,
investor demand creates new opportunities for managers....