Expert Investor - Fund Selector Asset Class Report October 2017 FSACR_Oct17_BOOK.v2 | Page 8

Absolute return Buying/selling intentions
Increase
Hold
Decrease
Not use
These tables show the forward-looking
buying and selling intentions of European
fund selectors and asset allocators
towards various abs return strategies.
– Despite a long term slow down in the
number of buyers, the broad absolute
return asset class has been one of the most
successful in terms of fund flows in the past
three years. About 40% want to buy more
and sellers are few and far between.
Absolute return
80
60
40
20
0
Q3 ’14
Q3 ’15
Q3 ’16
Q3 ’17
Hedge strategies Buying/selling intentions
Increase
Hold
Decrease
Not use
These tables show the forward-looking
intentions of European fund selectors and
asset allocators towards the three most
popular hedge strategies.
– Among the hedge strategies, long/short
equities has the most buyers and net flows
have become positive again.
– Not as popular in terms of sentiment,
but still dominating fund flows is multi-
strat hedge. The last time the asset class
suffered a monthly net outflow was in
September 2014.
100
Hedge
strategies: long/short bonds
100
Hedge
strategies: long/short equities
80 80
60 60
40 40
20 20
0
Q3 ’15
Q3 ’16
Q3 ’17
100
Hedge
strategies: multi-strategy
80
60
40
20
0
8 | EI Fund selector asset class report
Q3 ’15
Q3 ’16
Q3 ’17
0
Q3 ’15
Q3 ’16
Q3 ’17