A recent study by Cerulli Associates about asset managers' retail and institutional product strategy and innovation across different asset classes (e.g., fixed income, alternatives) concludes that the industry is turning into the development of products centered on Global Equities.
"Aside from focusing on offering income-producing products and alternative investments, asset managers have been busy building out their international and global capabilities. U.S. investors have typically turned to international and global investment products for further diversification," Pamela DeBolt, associate director at Cerulli, explains. "Retail managers are allocating more of their product development resources over the next year to international/global equity."
"These funds are now attracting U.S. investors because they are considered cheaper than domestic equities," DeBolt adds.