Recent Studies Highlight Rapid Use of Liquid Alternatives. Managers Set Sights on DC Plans

Recent Studies Highlight Rapid Use of Liquid Alternatives. Managers Set Sights on DC Plans

A recent article published by COOConnect provides hard data on the growing use of alternative investments.  Our key takeaways:

 “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.  Liquid Alternatives grew 43% in 2013 to $137 billion and will reach between $650 and $950 billion by 2018.”

           — Developments and Opportunities for Hedge Fund Managers in the ’40 Act Space             —Barclays Prime Services

“$939 billion to flow into liquid alternatives by 2017.”

                                                                                      –Citi Prime Finance

 “Retail assets had grown by an estimated 21% annually since 2005 with the liquid alternatives sector now managing around $700 billion.”     

                                                                                        –McKinsey & Co

“60% of the DC plan market’s $5.1 trillion in assets was parked in mutual funds, adding this investor class had historically been averse to alternatives. Nonetheless, the SEI report added plan sponsors had become emboldened and were increasingly investing in real estate, inflation protected treasuries and commodities in search for greater yield.”

–SEI

The full article can be accessed at http://bit.ly/1qc6viO