Financial Research Corporation

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2012 Research Calendar

recent studies

recent studies

Alternative Products

At the forefront of the alternative products marketplace, FRC is a trusted resource for examining growth drivers and the various product type strategies. Our team brings the following perspectives to clients on the alternatives market:

  • 1940 Act Fund categorization and historical growth/performance tracking and perspective
  • Distribution/adviser perspective;
  • Hedge strategy and performance and trends perspective; and
  • Portfolio construction and the inclusion of alternatives.
  • This 360-degree perspective on alternatives is unparalleled in the industry.

    Alternatives Quarterly Updates
    These reports provide in-depth analysis, commentary, and data on the registered alternative products market. Each issue contains highlights of recent industry trends, analyzes assets and net flows by investment strategy, tracks emerging alternative strategies as well as new fund launches and closes. Regular features also include profiles of performance stand-outs, and managers.

    '40-Act Alternative Funds in Diversified Portfolios: Trends in Usage, Portfolio Construction and Product Development
    Mutual funds and ETFs which utilize hedge fund investment strategies have grown significantly over the past five years based on investor expectations for differentiated risk-returns and the potential diversification benefits they bring to investment portfolios. However, these strategies have sometimes shown a tendency toward high correlations with long-only funds during periods of height¬ened volatility in the investment markets. This trend has serious implications for inves¬tors and the growth of this new universe of funds.

    For this groundbreaking study, FRC surveyed gatekeepers, advisors and consumers to determine the best practices and best markets for product providers in the '40 Act space. The study examines how ''40 Act alternatives are used today, with an emphasis on what product to develop, how advisors and investors should use alts, trends in alts, and successful ways to position alts products. Subscribers will also receive FRC's projections of industry growth, with scenarios based on different market assumptions.

    Opportunities in Registered Alternative Products
    While alternative registered investment market is relatively insignificant compared to the overall market of mutual funds and ETFs, investor interest and annual growth has been spectacular. This report presents a classification system for alternatives, along with a comprehensive and detailed outline of assets, net sales, distribution by alternatives category. More importantly, the report covers marketing strategy and considerations by investment category and distribution channel, opportunities for industry partnerships sub-advised relationships, and a unique view on creative new investment strategies. Download Fact Sheet pdf

    ETF Trends: Insider Insights on Distribution, Portfolio Construction, Risk & Regulation
    FRC anticipates ongoing ETF asset growth and projects ETF assets to reach $1.8 trillion by 2014, up from an estimated $900 billion at year-end 2010. This study offers strategies for how manufacturers can overcome distribution and wholesaling challenges in this expanding marketplace. Leaders will share insights into what distribution models work best and how to avoid certain pitfalls during implementation.Download Fact Sheet pdf

    Mid-Year 2010 ETF Review
    The power and influence of Exchange Traded Funds (ETFs) is growing. In a new report, Mid-Year 2010 ETF Review, FRC provides an objective exploration of the key drivers and challenges to their growth. In addition, this timely report contains an analysis of current and historical ETF net flows and assets as of June 2010, as well as growth projections for ETFs through 2014.
    Download Fact Sheet pdf

    Actively Managed ETFs: Competitive Threat or Passing Fad?
    Download Fact Sheet pdf

    Caught Between Alpha & Beta: The Future of Retail Portfolio Construction
    As several investment vehicles grow from nascent markets to accepted alternatives, FRC believes actively managed funds will experience increased competition for assets. In this study, FRC examines the evolution of actively managed mutual funds and alternative investment vehicles to identify areas of opportunity and vulnerability in the rapidly changing world of retail portfolio construction. The study is based on two comprehensive surveys—one of financial advisors and one of asset managers. The advisor survey reveals product usage trends and attitudes about portfolio construction, while the asset manager survey provides product development strategies and insights into the perceptions of competition among investment vehicles. The views of both parties are compared and contrasted to examine whether asset managers strategies are in line with actual advisor needs.

    Download Study Overview, Table of Contents, and List of Exhibits pdf

    ETF Trends & Outlook: Strategic Developments for Index, Semi-Active, and Active ETF Solutions
    Download Fact Sheet pdf

    For more information contact us at 617-963-8967 or e-mail