INVESTMENT MANAGERS

SEI Knowledge Partnership

May
24
2010

Exotic to Mainstream: Growth of Alternative Mutual Funds in the U.S. and Europe

By SEI Knowledge Partnership

How to Capitalize on Convergence

White Paper: Exotic to Mainstream: Growth of Alternative Mutual Funds in the U.S. and Europe : (PDF 24 pages, 1.57 MB) 

Against the current financial backdrop and in light of a restless, empowered investor base facing fund sponsors, the SEI Knowledge Partnership joined forces with Strategic Insight to evaluate the opportunities and challenges associated with launching and distributing alternative investment strategies in a mutual fund format in the United States and in Europe.

Evolving investor demand is driving convergence of traditional and alternative investment products in the United States and Europe.

Our report examines:

  • The backdrop that has led to the significant increase in use of these products
  • The opportunities and challenges that face investment managers looking to launch alternative mutual funds.

"Exotic to Mainstream: Growth of Alternative Mutual Funds in the U.S. and Europe" provides managers with an overview of this market and the trends driving growth. The trend toward “mainstream alternatives” holds substantial appeal for investment managers, and a diverse group of strategies and managers are already experiencing success with these products in the U.S. and Europe.

In addition, our report details the hurdles and considerations managers must understand before launching alternative mutual funds, including:

  • The size of the market and the potential opportunity
  • The decision to build, buy or outsource to gain the expertise needed
  • The operational, governance and product development nuances that accompany these products
  • What it takes to distribute and service alternative mutual funds