mast image

Special Report

Impact investing


Multi manager industry to double to $1trn by 2007

GLOBAL- Investments worldwide in multi-manager products are set to double to over US$1 trillion by 2007 according to proprietary data and analysis from the US research and consultancy firm Cerulli Associates.

Its report, due for publication next month, says multi-management is one of the fastest-growing sub segments of the asset management industry.

It estimates that approximately $489bn was invested in multi manager products at the end of last year, a figure that has grown at an annual rate of 15% since 1999. This compares favourably with the global asset management industry which grew 3% over the same period.

Most of this recent growth has emanated from outside the US, multi-management’s birthplace, and come largely from continental Europe which looks likely to drive future expansion. Cerulli estimates growth in non-US markets will be most robust at a projected 22%.

It says growth will increase for numerous reasons including:

o The demand for open architecture intensifying
o Non-U.S. investors continuing to diversify into equities and foreign asset classes
o New investors in less developed markets continuing to turn to multi-manager funds for advice and simplicity
o Asset managers seeking cost efficiencies to offset increased pressure on their fees and
o Pension reform and the development of European institutional markets benefiting managers of managers.

Fans of multi-management claim it offers benefits including lower risk and a diversification of managers, styles and asset classes. They also claim it represents an alternative means for asset managers seeking better global distribution.

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2559

    Asset class: Multi Assets.
    Asset region: -.
    Size: EUR 15m (may be split into two mandates EUR 7.5m).
    Closing date: 2019-09-06.

  • QN-2560

    Asset class: Private Equity.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

  • QN-2561

    Asset class: Infrastructure.
    Asset region: Global.
    Size: $40m.
    Closing date: 2019-08-30.

Begin Your Search Here