Liquid Alternative investments have emerged over the past decade as one of the fastest-growing areas within asset management. As pensions, endowments, foundations and other institutional investors have long benefited from Alternative Investments within their portfolios, Liquid Alternatives enable investors to have access to alternative investment strategies in fund structures that provide daily liquidity, full transparency, low investment minimums and other key attributes for investors. DailyAlts is your source for the most up-to-the-minute news, commentary and analysis on the global market for Liquid Alternatives.
Simplify Asset Management as launched two new ETFs designed to enhance portfolio yield without significant credit or duration exposure, and which use sophisticated option-writing algorithms to enhance returns.
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George Matthews is a managing director and co-head of Product for the Systematic Edge Equity team at Allspring Global Investments. In this capacity, he leads global institutional product direction for the Systematic Edge platform. George specializes in factor-based investing and serves as a senior product specialist for the team’s equity group.
Canadian fund manager Purpose Investments Inc has launched the Purpose Cash Management Fund on the Toronto Stock Exchange. The yields on the fund investments are expected to rise in tandem with the rate hikes to be implemented by the Bank of Canada in its effort to tame inflation.
Liquid Alternatives: Bobby Blue, Senior Manager Research Analyst, Morningstar, On The Rising Inflows Into Liquid Alts
As equities and bonds suffer in a challenging macroeconomic environment, liquid alternatives have made a comeback. Investors are plowing money into strategies such as managed futures, volatility, long-short equity, and more. Since last year, as bonds and stocks stumbled, inflows have surged into liquid alternatives. Liquid alts are mutual funds, closed-end funds, and ETFs that invest in alternative investment strategies offering downside protection and diversification opportunities while providing daily liquidity which makes them accessible to all investors.
Affiliated Managers Group, Inc. (NYSE: AMG) is a leading partner to independent active investment management firms globally. AMG’s strategy is to generate long-term value by investing in a diverse array of high-quality independent partner-owned firms. The company’s Q2 Earnings Call on Monday, August 2, had some valuable takeaways for alternatives investing, particularly liquid alternatives.
There is a spike in inflows into liquid alts funds during 2022. According to a 2019 study by Greenwich Associates, liquid alts then had a market share of 4% among institutional investors, ranging from a high of 6% among public pension funds to a low of 2% among corporate programs and outsourced CIOs in the…
Rising interest rates, runaway inflation, and geopolitical turmoil have combined to ruin the pitch for the go-to 60/40 portfolio allocation between bonds and equities. Result: Advisors are leaning increasingly towards alternative investments and portfolio allocations to such products have risen sharply this year, according to a study by Cerulli Associates.
As the standard 60/40 portfolio allocation looks increasingly shaky, a hunt is afoot for alternative products, and liquid alternatives are tracking higher on investors’ radar. Fidelity Investments launched last week the Fidelity Macro Opportunities Fund (FAQFX) and Fidelity Risk Parity Fund (FAPZX), two new mutual funds marking the firm’s foray into liquid alternatives.
On July 12, the RiverNorth Enhanced Pre-Merger SPAC ETF (NYSEARCA: SPCZ) commenced trading on the NYSE. Launched by RiverNorth Capital Management, LLC and TrueMark Investments, the actively managed fund invests in pre-merger securities of SPACs (Special Purpose Acquisition Companies) whose business plan is to raise capital in an Initial Public Offering (IPO) and, within a specific period, engage in a merger or acquisition with one or more unidentified companies.
Lukas Strobl, editorial manager for EMEA at Morningstar, interviews Francesco Paganelli. The topic: Liquid alternatives as a “hedge fund-lite” kind of strategy.
Picton Mahoney Asset Management launched the new Picton Mahoney Fortified Alpha Alternative Fund earlier this month. A liquid alternative fund, it is available in five classes of units, namely, Class A, Class F, Class FT, Class I and ETF units, and aims to provide consistent long-term capital appreciation to unitholders with an attractive risk-adjusted rate of return.
Unigestion, the Geneva-headquartered, independent, asset management company specializing in risk-managed equity portfolios and alternatives, has launched a global macro fund within its liquid alternatives cross-asset range.
CI Global Asset Management announced on Monday the launch of six ETFs, one of which is an alternative fund that is also offered as a mutual fund. The CI Alternative Diversified Opportunities Fund is a liquid alternatives mutual fund sub-advised by Marret Asset Management Inc., a fund management team with deep experience in alternative fixed-income strategies.
Blueprint Investment Partners have issued a report analyzing the performance of liquid alternatives across major market drawdowns, given the fact that demand for these products has materialized into a 300% increase in U.S. liquid alternative mutual fund and ETF assets since Q3’07. The report finds that despite their perceived success, liquid alts face challenges such as high expenses, tracking error and clients’ propensity to exit these strategies in the face of bull markets.
Spawned after the 2008 financial crisis, liquid alternatives have disappointed investors. During the 2010s, these instruments averaged an annualized gain of 1.66%. Writing in Morningstar, columnist John Rekenthaler makes a telling comment in his article Liquid Alternatives Funds: Is There Any Hope?: “The concern lies when the hedged investment trails high-quality bonds, as has been the case with liquid alternatives funds. In that case, why bother with trickery? You could just hold Treasuries instead.”
The Aspect Core Diversified Programme is offered in a daily-liquid, UCITS-compliant investment vehicle. Aspect Capital Limited, a London-based systematic hedge fund and CTA pioneer with $8.8 billion in assets announced Wednesday (July 21, 2021) its launch of the Aspect Core UCITS Fund. The new fund joins the Aspect Diversified Trends Fund and the Aspect Systematic…
Liquid Alternatives/ESG: CI Global Launches Mutual Funds And ETFs Focusing On Climate Change, Liquid Alt Strategies
CI Global Asset Management announced today the launch of two new equity funds – the CI Global Climate Leaders Fund, which focuses on firms leading the global campaign against climate change, and CI Alternative North American Opportunities Fund, which uses alternative strategies to invest in innovative high-growth companies.
BlackRock (NYSE: BLK) has introduced its Systematic Multi-Strategy ESG Screened fund in Europe. The new fund is categorized as Article 8 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). It seeks to provide a total return in the form of capital and income through three uncorrelated and complementary strategies.
The Franklin K2 Cat Bond UCITS Fund and Franklin K2 Athena Risk Premia UCITS Fund make their debut in the face of growing demand for investment opportunities in the liquid alternatives space. The two strategies offer diversification benefits to European investors because of their substantially less correlation to the traditional asset classes.
Emles Advisors announced last week the launch of the Emles Alpha Opportunities ETF (EOPS) which applies a long/short strategy while investing primarily in value stocks of North American companies with a focus on “old economy” sectors like industrials, consumer discretionary, and materials. The fund is trading on the CBOE BZX Exchange and applies an expense ratio of 1.75%.
JP Morgan Asset Management (JPNAM) and Thailand’s Kasikorn Asset Management have jointly created a sustainable liquid alternative fund called K-SUSTAIN-UI. To be distributed by Kasikorn Private Banking, the new product will invest in the JP Morgan Multi-Manager Sustainable Long/Short Fund. It gives investors a liquid alternative product with an ESG focus.
The Wilshire Liquid Alternative Index Returns 1.54% In April. That figure underperformed the 1.63% monthly return from the HFRX Global Hedge Fund Index in the month of April.
Formidable Asset Management, LLC announced the launch of the Formidable ETF (NYSE:ARCA: FORH), the firm’s first ETF product. The ETF is an actively managed, liquid alternatives portfolio diversified among multiple distinct strategies, including tail hedging, inside a single ETF.
A retail investor called up Inker in the middle of the night to berate him for his view that retail investors would be hit hardest when the market collapses. Writing on the incident in his Q1 2021 letter, Inker said investors, particularly newbies, should shift away from speculative growth stocks to value or liquid alternatives.