Allocator Quarterly Q1 2016

Frontier Markets | We invite our readers to move past the artificial segmentation of the various markets and the convenient labels which suggest that some markets are more acceptable than others.

A lot has been and will be written about what happened in the Frontier Markets in 2015 and Q1 2016. We have also spent time discussing the events of 2015 and the challenges ahead. Clearly, the hype surrounding BRICs, N-11 and other elusive acronyms has created awareness of and fashion for a number of emerging and indeed frontier markets. However, it is important to look past the short-term noise and focus on the structural challenges which will impact people.

For the full PDF publication, click here.

EY ITEM Club releases Financial Services Outlook Summer 2013

The hedge fund industry is likely face some challenges ahead.

Ernst & Young released its Financial Services forecast Summer 2013. The report is a quick to read and relatively content light. However some key observations are being made that are interesting to note.

The asset management highlights are (Source: Ernst & Young):

  • UK share price will rise almost 15% this year, helping to increase equity asset under management (AuM) to GBP409bn
  • Bond AuM will drop to GBP133bn in 2017, from GBP136bn this year
  • 10% of UK equity funds are now index trackers rather than actively managed
  • Multi-asset funds will account for one-fourth of UK-focused assets by 2017

The report falls short to explain how the macro variables will unfold according to their forecast. Regrettably no mention is made on how the Fund of Funds and Hedge Fund industry will develop specifically. That is, are we likely to see a further consolidation among the Fund of Funds players and are the largetst Hedge Funds likely to get bigger? Equally, there is no suggestion how new and emerging fund managers will develop over the next few years and where the investor capital is likely to come from.