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Infrastructure funds may be poised for rapid growth

Over 47% of North American institutional investors surveyed in 2014 intend to increase their allocation to infrastructure, according to Preqin

May 03, 2014 11:21 IST | India Infoline News Service
The April 2014 issue of The Cerulli Edge-US Monthly Product Trends, analyzes product strategy and development. The April Monthly Spotlight features fund rationalization.
Highlights from this research:
Close to half (47%) of North American institutional investors surveyed in 2014 intend to increase their allocation to infrastructure, according to Preqin. For retail investors, infrastructure funds, including those that use in master limited partnership (MLP) funds to invest in oil and gas infrastructure, offer attractive yields and can operate as a hedge against inflation. Infrastructure funds may be poised for rapid growth-flows for the category were $2.7 billion in 2013 compared to only $892 million in 2012.
According to Cerulli's 2014 product development survey, small-cap strategies are on asset managers' radars for both the retail and institutional space. Product developers report that close to one-quarter of retail U.S. equity product plans will be focused on small caps and 11% on institutional.
International equity mutual funds continued their momentum into the new year, finishing 1Q as the top flow-gathering asset class YTD ($41.4 billion). While ETFs took in net flows of $7.5 billion during March, year-to-date the vehicle has only witnessed inflows of $11.6 billion. Dragging down flows into ETFs through the first quarter are net redemptions of -$13.1 billion from the domestic equity asset class.

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