Report from SEI, June 2013
“It is no overstatement to say that the move toward alternative investing has been one of the farthest-reaching developments in institutional investing over the last quarter century. The past decade has seen two waves of particularly rapid growth. Between 2005 and 2007, global alternative asset classes managed by various types of managers nearly doubled, from US$2.9 trillion to $5.7 trillion. After a pause in 2008, as shocked investors regained their bearings and took stock, the importance of non-correlation and hedging truly hit home. Global alternative assets under management (AUM) then rose to a record level of $6.5 trillion by the end of 2011, with a growth rate far outpacing that of traditional asset classes during this period.
Now a third wave of growth in alternative investing is underway, only this time it is encompassing the mainstream. Alternatives are migrating from institutional to retail markets, just as the use of asset allocation models did several decades back…..”
Download the full report here.