U.S. alternative mutual fund assets are expected to double their share of total mutual fund assets, according to new proprietary research from global analytics firm Cerulli Associates.
“Alternative assets are expected to grow with robust momentum, and double their share of total mutual fund assets in the next two years,” said Michele Giuditta, associate director at Cerulli, in a release.
The research is contained in a new Cerulli report, “Alternative Products and Strategies 2014: Identifying Opportunities in a Dynamic Investment Landscape,” a sourcebook focused on the U.S. retail and institutional alternative product landscape, including distribution and product development trends.
“As of year-end 2013, alternative mutual fund assets made up just 3% of total mutual fund assets, and asset managers expect this to grow to 6% by 2015,” Giuditta said.
“Steady growth of alternative mutual fund use is expected by advisors and individuals in the years to come,” Giuditta said. “Current allocations are well below target levels, so there is an opportunity for investment managers to raise assets.”
As asset managers and advisors continue their efforts to close the educational gap that currently exists with alternative products and strategies, Cerulli concurs that alternative assets’ share of total mutual fund assets will grow with solid momentum.
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