Gatekeepers anticipate increasing the proportion of alternative investments used in institutions' portfolios through 2015, according Cerulli.
The September 2014 of The Cerulli Edge – US Monthly Product Trends says consultant and institutional investor demand bodes well for asset managers overseeing alternative asset strategies.
At USD11.9 trillion and USD1.9 trillion, respectively, mutual funds and ETFs are at their highest asset levels since January 2014.
The large-blend and foreign large-blend categories captured the most flows for mutual funds in August and 2014 YTD.
ETF flows increased by 20 per cent from July to August, but they lagged behind June's peak of USD24 billion.
Sponsors are striving to develop new products as they notice investors' heightened focus on the alternative ETF space. Of the ETF sponsors surveyed by Cerulli, 43 per cent stated that the alternative ETF asset class was a primary focus of product development.