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A wave of new money could flow into hedge funds after strong recent industry performance, new research from BlackRock suggests.
Low interest rates and unfunded pension fund liabilities are encouraging institutional investors to re-think their allocations to traditional assets like equities and bonds, and seek alternative sources of income and growth. BlackRock analysis of the industry found the average (median) hedge fund generated alpha of 3.1 per cent against an index return of 9.1 per cent (HFRI Fund Weighted Composite Index) in 2013.
Mark Woolley, Head of European and Asian Hedge Fund Research at BlackRock Alternative Advisors,says: “Hedge funds often
ETF Securities has established itself as one of the true pioneers in the commodity ETP arena. Commodities dominate the firm’s product suite of 278 ETPs with 100 individual ETCs available to investors.
As to where investors should be focusing their attention in commodities, Nicholas Brooks (pictured), Head of Research and Investment Strategy at ETF Securities notes that despite investors’ increased appetite for riskier assets – in particular US equities – a straight-line economic growth trajectory is not necessarily guaranteed.
“On the one hand cyclical commodities like industrial metals and platinum and palladium are attracting strong interest because most investors
For many investors, ETFs are fast becoming an effective way to engage in tactical trading. And when it comes to investment tactics, commodities represent one of the most challenging arenas in which to participate. Last year, the Dow Jones-UBS Commodity Index was down nearly 9 per cent. This was reflected in outflows from Exchange Traded Commodities (ETCs). Figures reported last December by London-based ETF consultancy firm, ETFGI, showed that commodity ETPs suffered a record level of USD39.7bn in net outflows for the year.
Already, though, things appear to be picking up. The DJUBS CI is now up over 6 per
To countenance the idea that any form of economic slowdown in China could lead to an extended period of depressed commodity prices is misguided. Admittedly, commodity prices over the least three years have been poor. But in the view of Jeremy Baker (pictured), Head of Commodities at Harcourt, the events of 08 and ’09, which led to a structural bear market were more of an “interruption” to the commodity supercycle than anything longterm.
Simply put, the case for investing in commodities remains high says Baker, particularly when placing China at the centre of the argument; something that Baker has written
As the US economy continues to show signs of recovery and Europe begins to stabilise there is growing sentiment that developed markets will have more of an influence on global commodity prices this year.
This is how David Donora (pictured), co-portfolio manager of the Threadneedle Enhanced Commodities Strategy is positioning the portfolio, with oil and oil-based products – in particular gasoline – forming the highest conviction sectors.
As Donora explains, a growing US economy will lead to increased demand for gasoline. This has already been borne out by the IEA, which said US oil demand rose by 390,000 barrels
Over the past 12 months the S&P 500 index has gained nearly 24 per cent. With the US economic recovery building momentum, the UK enjoying its fastest period of growth since 2007 and the Eurozone returning to some sort of normalcy, many commentators are expecting the influence on commodity prices to shift from East to West.
“I agree with this to some extent but it will be commodity-specific,” says Jeremy Baker, Head of Commodities at Harcourt Investment Consulting. “A lot of industrial metals are still geared towards Asia and China. China for example is 50 per cent of the copper
The global trading industry has begun implementation of the guidelines set down by the FIX Trading Community to reduce operational risk and enable more efficient set up of clients on OTC electronic trading platforms.
The Trading Enablement Standardisation Initiative (TESI), launched in January 2013, has been working with a number of platforms to promote automation and standardisation of important client information such as:
• Enable a brand new buy-side trader
• Setting the risk profile for a new buy-side trader
• Enabling new products for an existing buy-side trader
By using the FIX Messaging language to transmit this
AllianceBernstein has appointed Michael H Conn as managing director – strategy, operations and development, supporting the firm's fund of funds business.
He will be based in Los Angeles and report to Marc Gamsin, head of AllianceBernstein's alternative investment management group.
In this newly created role, Conn will work closely with Gamsin to develop the business strategy and new products for the group, as well as support existing and potential clients. He will also collaborate with the broader alternatives team to enhance the firm's diverse product offerings and help clients better understand the role alternatives can play in their portfolio.
As global markets plunged in the first month of the Chinese New Year, the trades that generated the most profit in 2013 came under fresh critique. One of the most noteworthy dips was seen in Japanese markets, where the Nikkei fell nearly 10 per cent in the last month and the yen gained 3 per cent against the US dollar.
These swings brought losses to Japan-focused hedge funds, which won the crown with outsized gains in 2013. Japan was not the only market that reversed course. Emerging markets, EU and U.S all shook at the beginning of the year. The S&P 500
Iconic is launching a turnkey Malta authorised, EU-compliant hosted-funds platform enabling EU and non EU based fund managers to run their own fully supported and administered funds.
In addition, for those larger intermediaries which have an asset management capability Iconic can support this new asset management area of their business through this platform.
The platform provides EU-compliant substance infrastructure and can establish either hosted feeder funds or host-flexible non-UCITS fund structures. Later in 2014, Iconic will launch a AIFMD & UCITS IV funds capability and services menu.
“Not all hosted-fund platforms are created equal,” says David Barclay-Miller, co-founder
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