Long/short credit funds may only represent a small chunk of the alt mutual funds pie, about two percent, but the category is blossoming beautifully. This is pretty much the only good news according to a new report by .
The July 2013 issue of "The Cerulli Edge — U.S Monthly Product Trends" shows that long/short credit funds grew by 46 percent in 2012, while mutual flows continued down a slope throughout the second quarter of 2013.
June outflows weighed in at $47.3 billion, the worst it's been for mutual funds since the $98.8 billion of outflows inOctober 2008. Even ETFs got the wind knocked out of them, suffering outflows of $10.5 billion in June.
See the full press release below.
Company Press Release
Long/Short Credit Garnering Interest
July 2013, Boston. In the July 2013 issue of The Cerulli Edge - U.S. Monthly Product Trends, Cerulli provides special coverage on alternative strategies. July's Monthly Spotlight takes a close look at pinnacle player AQR Capital.?
?Highlights from this research:
• Even though long/short credit funds only represent 2%, or $4.5 billion, of alternative mutual fund assets, the category experienced robust growth in 2012, boosting assets by 46%. It was the third-fastest growing among the alternative categories, behind MLP funds and inverse/bear market funds, which expanded by 115% and 67%, respectively.
• Capping off what was already a downward trend in 2Q mutual funds flows, June outflows of -$47.3 billion displayed a level not seen in the vehicle since October 2008 (-$98.8 billion). These outflows dragged overall 2Q 2013 flows to $27.1 billion. International equity was the leading category in June, which also propelled it past taxable bond to the highest sales YTD.
• ETFs experienced overall monthly net outflows of -$10.5 billion in June, which was the first time since June 2011. ETF managers with limited focus in the international equity, commodity, and long-term bond classes fared the best.
• Alternative product development appears to have moderated in 2013 with only 15 new alternative mutual funds launched in the first quarter-but Cerulli anticipates many more new portfolios will be launched. Nearly 90% of asset managers that responded to a recent Cerulli survey reported plans to develop four or more alternative products during the next 12 months.
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