Multistrategy alternative mutual funds experienced strong asset growth of 37.4% in 2012 compared to single strategy at 17%, according to Cerulli’s latest U.S. Monthly Product Trends. “A lot of financial advisors don’t have enough expertise in alternatives or time to figure out how to allocate among various strategies,” so they are opting for a complete solution, where the manager determines the allocation, according to Cindy Zarker, director of Cerulli’s asset management practice.
Meanwhile, bank-loan funds rose from the ninth-ranked flow category in 2012 to fourth as of February 2013 YTD, according to Cerulli. The majority of more than $97 billion in bank-loan fund assets reside in open-end mutual funds (85.4%), the consultancy said. Some bank-loan assets are managed in other vehicles or directly for institutional clients.