The September 2013 issue of The Cerulli Edge-U.S. Asset Management Edition examines how asset managers balance risk, and provides a close look at requests for proposals (RFPs) and database teams, exchange-traded funds (ETFs) and alternative investments.
“Asset managers have refined their approach to asset allocation over the past several years to emphasize risk-based approaches,” said Michele Giuditta, associate director at Cerulli. “Using a risk-based lens, managers aim to adjust their portfolios to offset periods of extreme volatility and market stress that may affect both equity- and credit-related investments in the same ways.”
More recently, asset managers are experiencing demand for a range of hedge fund strategies—credit-related, global macro and event-driven ones in particular. Boston-based global analytics firm Cerulli believes that demand for these products should continue in the near term, given the low-interest-rate environment, ongoing global financial uncertainty, and steady merger and acquisition activity.