Westward Group for Tax and Estate
Planning Advisors Tokyo Tips – International stocks make up the most popular
mutual fund flows by asset class, according to new research.
Cerulli Associates discloses this
finding in “The Cerulli Edge: U.S. Asset Management.” Focusing at length on
alternative investments, the report also offers insights into fixed income,
private equity, customization and organizational alignment to enhance
distributor relationships, marketing and
sales plans.
For the trailing 12 months ended
February 2014, the survey finds mutual fund flows of international stocks
constituted $142.2 billion, a total that significantly outstrips other asset
classes. The next three largest asset classes for the prior 12 months included:
- Balanced funds ($94 billion);
- U.S. stock ($60.1 billion); and
- Alternatives ($41.3 billion).
The report adds most
institutional investors intend to maintain or increase their alternative asset
allocations in 2014. Among the target sectors within this asset class are
private equity, hedge funds, real estate and infrastructure.
The heightened focus on
alternative investments has been an ongoing theme in recent months. Findings
recently unveiled in “Investing Outside the Box,” a study on trends in
nontraditional investing from MainStay Investments (a New York Life company and
Barron’s Top Fund Family) reveal that high net worth investors on average have
22 percent of their portfolios invested in alternatives. One quarter of these
investors (26 percent) see their exposure to alternatives increasing over the
next five years by an average of 2.9 percentage points. Another 66 percent
believe their level of exposure will remain the same.
And as reported by Cerulli last
month in the “Cerulli Edge: Institutional Edition,” international equities
remain the predominant focus of all new products under consideration or
development (24.1 percent), followed by global equities (14.9 percent), world
bonds (13.5 percent) and asset allocation/global tactical asset allocation
strategies (10.6 percent).
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