The convergence between alternatives and traditional asset managers looks set to continue with liquid alternative mutual funds likely to account for up to 50% of net new retail revenues over the next five years, according to a report by McKinsey &
It is essential alternative mutual funds have in place liquidity terms and leverage profiles that meet the compliance requirements enshrined in the ’40 Act if they are to not fall foul of the upcoming examinations being undertaken by the Securitie
Liquid alternatives, such as ’40 Act alternative mutual funds and absolute return UCITS, are where exchange traded funds (ETFs) were in 2006, while some speculate the sector could rival offshore hedge funds by assets within five years.
Hedge funds embracing liquid alternative structures have been advised to ensure their products are in compliance with the liquidity and leverage restrictions enshrined in the 40’ Act rules following growing interest from the Securities and Exchang
The liquid alternatives industry is growing at a faster rate than traditional hedge funds as investor interest in these regulated structures shows no sign of abating, according to a study by Barclays Prime Services.