The majority (70 per cent) of ETF sponsors believe that the alternative space is an area where there is unmet demand for ETF products, according to the July 2015 issue of The Cerulli Edge – US Monthly Product Trends.
Sponsors tell Cerulli that they are optimistic about inflows into the alternative asset class-50 per cent of sponsors believe alternatives will experience inflows over next 12 months in the institutional channel, and 38 per cent believe the retail channel will garner inflows.
Mutual funds ended the first half of 2015 with assets totalling USD12.5 trillion, up only 2.7 per cent from December 2014. International equity funds reaped flows of USD81.6 billion as of 2Q 2015 YTD, almost twice as much as all other asset classes combined. ETF assets declined for the first time since January, falling by 1.7 per cent in June. Monthly flows remained positive at USD16.2 billion, propelling the YTD total to a massive USD101 billion.
Global macro strategies are in demand according to asset managers polled by Cerulli, with 40 per cent of managers receiving several requests for these funds from advisors and investors. Cerulli expects new product development to continue in the near term. In a recent survey, more than one-third (36 per cent) of managers cite that they are in the process of developing a global macro product and another 21 per cent have plans to do so.