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Liquid Alternatives

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.

Top Story

Liquid Alternatives: Takeaways From The AMG Q2 Earnings Call

August 2, 2022

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.

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More Stories on Liquid Alternatives

Liquid Alternatives: The KraneShares ESG China ETF Lists in London

February 5, 2020

Kraneshares, the asset management company that believes “the relationship between the US and China will be the most important economic partnership of our lifetimes,” and specializes in China-facing ETFs, launched the KraneShares MSCI China ESG Leaders UCITS ETF (KESG).

Liquid Alternatives: The First Trust Merger Arbitrage ETF Will Skim Merger Spreads

February 4, 2020

The First Trust Merger Arbitrage ETF Will Skim Merger Spreads. It’s a hedge fund type, actively managed ETF. But don’t balk at its fees.

Liquid Alternatives: UK Investors Can Now Get Their Hands On First Trust’s US Capital Strength Strategy

February 3, 2020

First Trust launches a highly successful US strategy for UK investors. The First Trust Capital Strength UCITS ETF (FTCS) will replicate one that swept up $1.5 billion in inflows in the US.
“Over the last twenty-five years in times of market instability, quality and less volatile US equities have historically outperformed the S&P 500 index in down months by 74% and 85% respectively,” said Gregg Guerin, senior product specialist at First Trust. “We are pleased to bring this rules-based strategy to market and believe FTCS offers advisers and wealth managers the potential for protecting in negative markets while participating in increasing markets.”

Liquid Alts: China Urges Funds to Avoid Selling Shares

February 3, 2020

Chinese mutual funds are facing new regulatory scrutiny in the face of a sharp selloff Monday. During the first day since the Lunar New Year holiday, the Shanghai Index fell by 7%. Chinese officials are doing everything they can to prevent a sharper decline.

Liquid Alternatives: Short the Pandemic! Buy an Inverse China ETF

January 31, 2020

As the Chinese coronavirus endemic gathers momentum, gloom and doom prognostications on the Chinese economy are quickly out of the gate. Short the Pandemic! Buy an Inverse China ETF. It’s a no-brainer that the Chinese economy, hence Chinese stocks, will take a hit from the coronavirus. And certain ETF’s reflected investors’ sentiments.

Liquid Alternatives: CI Investments Floats Three Liquid Alt ETFs in Modernization Drive

January 30, 2020

CI Investments Floats Three Liquid Alt ETFs in Modernization Drive. The ETFs will trade on the Toronto Stock Exchange.
The new ETFs from CI Investments are a take on the strategies followed in the fund manager’s liquid alternative mutual funds launched in November 2018. These funds have scooped up inflows above US$1.1 billion as of December 31, 2019.

Liquid Alternatives: The Goldman Sachs “Stealth” ETF

January 29, 2020

Earlier this month, Goldman Sachs filed to set up a non-transparent ETF that would not disclose its investments daily. The fund would, therefore, be different from run-of-the-mill ETFs which are required to publish details of their holdings every day in the interests of transparency.

Liquid Alternatives: 5G-Themed, “The First 5G ETF” (NYSE: FIVG) Rakes in $200 Million

January 28, 2020

The First 5G ETF (NYSE: FIVG), from the Defiance stable, mopped up AUM of over $200 million in less than 12 months.
FIVG, a thematic ETF focused on investing around the theme of 5G connectivity, has met with an enthusiastic response from investors.

Liquid Alternatives: The iMaps Investment Strategy Based ETI Launches for Retail Investors On Vienna Bourse

January 16, 2020

The first Exchange Traded Instrument (ETI) from the Liechtenstein-based iMaps ETI plc launched on January 13 on the Vienna Stock Exchange.
Asset manager and BaFin licensed PP Asset Management, which runs the Haack investment strategy, launched the Haack Performance ETI on Monday. Hans-Jürgen Haack, Senior Manager at PP Asset Management, masterminded the strategy. It has delivered a return of 20% over the past year.

Liquid Alternatives: In 2019, Globally, and especially in Europe, ETFs Raked It In

January 16, 2020

The global ETF market drew in inflows of nearly half a trillion euros (€495bn) in 2019.
But European ETFs were a standout, pulling in €104bn of net new assets, and setting a new record, according to data from Amundi Asset Management cited by INVESTMENT WEEK.

Investment Company Institute: Funds are Pouring Money into Bonds

January 16, 2020

The Investment Company Institute cited the largest outflows of capital from mutual funds and ETFs since September. During the first full week of 2020, fund investors pulled $13.1 billion out of the vehicles.

Liquid Alternatives: Europe’s First and Only Medical Cannabis UCITS ETF To Launch Next Week

January 8, 2020

Europe’s First and Only Medical Cannabis UCITS ETF To Launch Next Week. It will also be the first European ETF from Purpose Investments, the Toronto-based asset manager and ETF issuer. The Medical Cannabis and Wellness UCITS ETF (CBSX GR) will trade on Deutsche Börse’s Xetra. It is the first UCITS ETF to deliver targeted exposure to the fast-growing medical cannabis industry.

Liquid Alternatives: Franklin Templeton Launches FLSP, its First Alternative ETF

December 30, 2019

Franklin Templeton added a new active fund to its ETF range. The Franklin Liberty Systematic Style Premia ETF (FLSP) is an alternative ETF that is actively risk-managed, seeking a target annualized volatility of 8 percent, and targets four style factors: quality, value, momentum and carry.
The FLSP fund seeks to deliver absolute return (positive returns in rising or falling markets) by employing a multi-asset, long/short strategy.

Bank of America: ETF Assets to Go 10X, Hit $50 Trillion in 10 Years

December 13, 2019

ETF assets could hit $50 trillion by 2030, a figure that is more than ten times current levels, according to Bank of America. The bank also said this week that these assets may hit $5.3 trillion by the end of 2020 (Note: total assets are $4.3 trillion as of this publication date).

Alternative Investments – ARP Funds Outperformed During Q4 2018 Slump

December 10, 2019

Alternative Risk Premia (ARP) funds passed their initial test during the correction in the last quarter of 2018, says Cambridge Associates.
Research by Cambridge Associates shows that Alternative Risk Premia (ARP) funds, which are a kind of hedge fund alternatives, returned -4% during the market correction in the last quarter of 2018. In contrast, equities returned -13.7%, and equity hedge funds returned -9.3%.
By this measure, ARP funds appear to have passed their first test.

BAML: Quant Mutual Funds Underperforming Stocks in 2019

December 10, 2019

Quantitative funds are lagging behind the major stock market indexes in 2019.

The market is heading towards its best year since 2013, but those funds managed based on investment factors have not kept up with the indexes. According to a recent report from Bank of America research analysts, large-cap funds managed using quantitative analysis are lagging the indexes buy an average of 3.2% for the year, and only 11% of these funds have managed to outperform.

Liquid Alternatives: YTD Returns for Alternative UCITS Strategies Swing Dramatically from 2018

December 10, 2019

YTD Returns for Alternative UCITS Strategies Swing Dramatically from 2018. About 80% of alternative UCITS funds generated positive returns until end-October, with nearly all strategies doing well.
According to HedgeWeek, the LuxHedge Global Alternative UCITS Index has gained 3.22% year to date in October 2019, indicating the average fund in this space is in positive territory.

The RISE and RISE of Global ETFs’ AUM

December 3, 2019

In 2019, global ETF assets have added $840 billion from January 1st through October 31st, bringing the tally to a record $6 trillion.
According to EPFR, ETF AUM (assets under management) have grown six-fold in the decade since the global financial crisis. Interestingly, assets added $1 trillion every year since 2016. Which ETFs raked it in thisyear?

Manulife: India’s Mutual Fund Market To Leapfrog To Second Largest in Asia

November 29, 2019

The size of the Indian mutual fund market is currently about $ 390 billion. According to Manulife’s Dommermuth, India will be the fastest-growing mutual fund market in Asia. Within three years it will surpass $600 billion in size and overtake Japan to become the second-largest mutual fund market in the region.

Liquid Alternatives

Liquid Alternatives: SEC Proposes New ETF Derivatives Rules

November 27, 2019

The SEC has proposed new rules on the use of derivatives by mutual funds, ETFs, and closed-end funds. The new rules would also impact business development companies. The new rule would provide an updated and more comprehensive approach to the regulation of funds’ derivatives use.

CIO Roundtable: Liquid Alternatives Named a Top 10 Investment Theme for 2020

November 26, 2019

The leaders of investment platforms at the $339 billion investment manager Neuberger Berman discussed the investment environment through 2019, and the key trends they expect in 2020. Liquid alternative investments made it to the list of the top 10 investment themes in the coming year.
Erik Knutzen, Chief Investment Officer-Multi-asset Class, and Anthony D Tutrone, Global Head of Alternatives, weighed in on liquid alternatives.

TD Ameritrade

Charles Schwab Looks to Purchase TD Ameritrade

November 21, 2019

Charles Schwab and TD Ameritrade could merge, according to CNBC’s Becky Quick. News of a possible deal dropped on Thursday morning.

Non-transparent ETFs Will Soon Get Active Managers Into the Act

November 18, 2019

Active fund managers will soon get to join the passive party via “stealth” ETFs.
The SEC has granted asset managers T. Rowe Price, Natixis, Fidelity, and Blue Tractor preliminary regulatory approval to launch non-transparent ETFs. These new ETFs require their holdings to be declared quarterly, instead of daily.

International Monetary Fund

IMF Analyst: A Lot of Mutual Funds Could Collapse in a Panic

November 13, 2019

International Monetary Fund analyst Laura Kodres warns that investors are putting too much faith in mutual funds. According to Deutsche Bank, half of the high-yield asset funds could experience liquidity shortfalls in a market panic.