The trend towards customized product offerings is clear. Almost half (47 percent) of all fund managers report they already offer a fund of one or managed account solution. Twenty-one percent say they plan to offer these solutions within the next 5 years.
Not surprisingly, large-sized funds were more than twice as likely as their smaller counterparts to say they already offered funds of one. But smaller funds seem keen to catch up: 50 percent of respondents from smaller funds said they plan to offer a fund of one solution in the next 5 years (half of those say they will offer the product within the next 12 months).
While customized products – such as funds of one and managed accounts – are the most common products being offered, there are indications that ‘liquid alternatives’ such as UCITS and 40-Act funds are slowly continuing to gain traction.
Indeed, 38 percent of respondents said that they either had, or were developing, an UCITS fund (making it the second most popular product offering according to our survey). More than a quarter (27 percent) said the same about 40-Act Funds (the fourth ranked product).
Hedge fund managers starting to plan for a change in investor demographics over next 5 years and are exploring developing and emerging markets.