The number of alternative and multi-asset fund launches have increased 15 per cent since 2010, according to research from Cerulli Associates.
"The market crisis was highly disruptive, temporarily halting new product introductions as budgets were slashed, but in the longer term it triggered creative disruption," says Cindy Zarker, director at Cerulli. "Five hundred new mutual funds have been created on average each year since 2010. Three of the most prominent areas of product innovation have been alternative investments, multi-strategy funds, and index-based strategies."
The November 2014 issue of The Cerulli Edge – US Edition analyses product innovation, exploring client-centric approaches, and emerging markets.
"With the market crisis behind them, investors approach portfolio construction differently. They are more attuned to fund expenses, highly aware of the need to manage risk, and more open to investment opportunities beyond US borders," Zarker says.
"The top-five investment strategies that financial advisors are requesting in 2014 include income, multi-strategy alternative, global/international equity, single-strategy alternative, and global tactical asset allocation," Zarker adds. "Practical matters such as retirees' need for income continue to shape investment decisions. Identifying sources of consistent income for their portfolios has been an ongoing challenge given persistently low interest rates during the past five years."
