Investors today are being presented with an increasingly diverse and confusing menu of smart beta strategies. The newest products claim to incorporate the latest research innovations, particularly those concerning the construction and implementation of portfolios.
Although CTAs bounced back in the fourth quarter of 2017, with the return of trending markets, full-year performance figures for managed futures have proven lacklustre, if considerably better than the broadly negative results of 2016.
Lire la suite : CTAs Deliver Strong Fundraising Despite Performance
Amid the latest round of Direct Lending fundraising, a disturbing theme has started to emerge. Many managers, it seems, are rather keen to lower their hurdle rates – the point at which lucrative catch-ups and performance fees kick in. It is a step that a number of their private equity counterparts have already taken.
Lire la suite : The Hurdle Rate Debate: Are Private Debt Managers Lowering the Bar?
Three years ago, we witnessed a wave of investment in Multi Asset Credit (or “MAC”) strategies. Not to be confused with Absolute Return or Unconstrained funds, which also experienced a surge in popularity, MAC products were marketed with a yield-boosting agenda and an eye towards upcoming rises in interest rates. In the simplest terms, they represented an exchange of interest rate risk for credit risk.
Lire la suite : Is This the Moment of Truth for Multi Asset Credit?
The financial crisis ushered in a new era of unlisted infrastructure investment. Three trends - high appetite for illiquid investments, the desire to reduce equity risk exposure after the lessons of 2008 and the subsequent need for income generation in an era of low rates - converged to create a ‘perfect storm’ of demand.
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