Fund groups in Europe believe launching hedge funds is no longer as attractive as launching long-onl...
Fund groups in Europe believe launching hedge funds is no longer as attractive as launching long-only equity funds.
The shift, according to recent research conducted with 61 European fund groups by online funds data provider Morningstar, comes as fund groups show increased optimism in equity markets. Questioned in April, 66% believe launches in Europe will be dominated equity funds, up from just 47% in January, providing an index of what kind of products groups across Europe believe will sell.
This ties in closely with groups' belief that the outlook for global equities looks promising with 52% expecting a 5% to 10% return in the coming 12 months and 40% expecting between a 10% and 15% return.
In January, 30% of fund groups questioned said hedge funds would dominate new launches in 2002.
Morningstar found there has been a slight shift away from confidence that the growth style will come back into favour, although it remains preferred to value. Of those polled in April 20% expected value to continue to thrive, while 39% believed growth would prosper. 41% were neutral on the question.
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