European Money Managers Respond To Hedge Fund Demand

by Carla Johnson, Investors Offshore.com

28 June 2004

Half of the European asset management firms taking part in a recent survey expect to launch hedge funds over the next twelve months in response to growing demand for these loosely regulated investment vehicles.

The study, undertaken by investment research firm Morningstar, polled 58 fund management groups collectively responsible for managing over EUR3 trillion in assets and found that 50% are intending to establish a hedge fund.

The survey also found that 58% of respondents believed that hedge funds had taken market share away from traditional investment portfolios while 73% of those polled thought they would take market share in the future.

Additionally, fewer asset managers in the survey believed that equity funds would feature heavily in product launches over the next twelve months, with fewer expecting to launch new funds.

Nevertheless, the survey found that 70% of respondents expected to see equities rise by between 5% and 10% over the next twelve months compared to 59% who thought the same in May.

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