Reality: Although burdensome for many, the new era of heightened regulation is also creating opportunities for managers to distinguish themselves from peers and tap into investor appetite for increased transparency and oversight. Of the 86 percent of alternative fund managers who expect their costs to increase over the next five years, largely driven by regulation, 75 percent are optimistic that this will not constrain their growth potential.“This survey highlights key changes that are coinciding with the growth and maturation of alternatives as an asset class and offers a glimpse into what the next five years will look like for the industry,” continued Sullivan. “Managers who remain innovative as they respond to demands from investors will be positioned for success in this new era where investors will look to employ alternatives more commonly than ever before.” Important trends and possible shifts in the industry over the next five years include: Regional expansion: Nearly one in five fund managers (18 percent) surveyed plan to expand into new regions by 2018 More managed accounts: More than one in four (26 percent) have introduced managed accounts in the past five years, and another 18 percent plan to do so by 2018 More hybrid funds: A majority of respondents (58 percent) say that hybrid alternative fund structures, which blend features of traditional hedge fund and private equity vehicles, will increase over the next five years M&A activity is set to increase: 10 percent of fund managers plan to acquire another business in the next five years; this compares to 7 percent who have already done so in the past five years For further information on the study and to view the executive summary, please click here. For special materials and other information, follow State Street on Twitter @State Street. About State Street Corporation State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $25.7 trillion in assets under custody and administration and $2.1 trillion in assets under management* at June 30, 2013, State Street operates in more than 100 geographic markets worldwide, including the U.S., Canada, Europe, the Middle East and Asia. For more information, visit State Street’s web site at www.statestreet.com. * This AUM includes the assets of the SPDR Gold Trust (approx. $37 billion as of June 30, 2013), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.
CORP-08511 State Street, in collaboration with Preqin, a leading research consultancy focused on alternative asset classes, conducted a survey, examines the current state and future outlook for the global alternative fund management industry. Conducted in July 2013, The survey garnered 391 responses from alternative fund managers globally: 55% North American; 29% European; 10% Asia-Pacific and 6% other