Fixed Income Leaders Summit’s Post

Where are Australian investors putting their money? “We’re seeing investors rethink how they allocate their assets in this rapidly changing environment. As a result, the UBS Asset Management team are working to deploy alternative investment strategies for clients to increase portfolio diversification and deliver more consistent returns” - Alison Telfer , Country Head, UBS Asset Management Australasia speaking at the Forbes Icons and Investors Summit in Sydney last Friday. Find out more about our Asset Management offerings at https://bit.ly/485O9In #Alternatives #UBSAM

Where are Australian investors putting their money? “We’re seeing investors rethink how they allocate their assets in this rapidly changing environment. As a result, the UBS Asset Management team are working to deploy alternative investment strategies for clients to increase portfolio diversification and deliver more consistent returns” - Alison Telfer , Country Head, UBS Asset Management Australasia speaking at the Forbes Icons and Investors Summit in Sydney last Friday. Find out more about our Asset Management offerings at https://from.ubs/6049mT6X1 #Alternatives #UBSAM

Explore the latest insights from Mahesh Narayan, Arcesium's Institutional Asset Management Segment Head, in his featured article in Traders Magazine. Dive into the complexities and strategies for asset managers diversifying into private markets. Read more here: https://bit.ly/3Yu8HHD #ThoughtLeadership #PrivateMarkets #AssetManagement #DataStrategy

The 40th edition of the Alt Goes Mainstream AGM Weekly newsletter is out! There's a sleeping giant in alternatives. Earlier this week, I was scrolling through my LinkedIn feed, and a post by Goldman Sachs Asset Management popped up. “Alternatives, seen differently,” it read. I clicked the link, which took me to the landing page for the Alternatives business at Goldman Sachs Asset Management. The numbers popped off the page. Goldman isn't included in the AGM Index because it's not a pure play alternative asset manager. But it doesn’t mean that Goldman’s alternatives unit is considered an afterthought in alternatives. In fact, they should be anything but. And it’s a business that the firm is maniacally focused on growing. With over $456B AUM and $251B raised into alternatives funds from 2019-2023, Goldman’s AUM figures and fundraising capabilities make them one of the industry’s larger alternatives players. From 2019 to 2022, Goldman has held the distinction of being a top five alternatives manager in cumulative gross fundraising, trailing only Blackstone, Apollo Global Management, Inc., KKR, and Brookfield Asset Management. Their focus on manufacturing and distributing alternatives products aligns with the firm’s broader key priority: grow management fees. Goldman’s CEO David Solomon and new Global Asset and Wealth Management Head Marc Nachmann both view the alternatives business — and the broader activities of the AWM division — as a vehicle for the firm to drive more stable, durable revenues and steady margins. Their focus appears to be working. In 2023, Goldman surpassed their $225B in gross alternatives fundraising by the end of 2023 to reach over $251B across both internal and open-architecture (i.e. 3rd party fund managers) strategies. The road ahead for Goldman isn’t without its challenges. But I wouldn't bet against Goldman Sachs. Click the link to read on for more 👇 This AGM Alts Weekly covers: 🗂️ AGM Index, an index that tracks the leading publicly traded alternative asset managers. 🗞️ AGM News of the Week, this week covering: 📌 Citywire's Selin Bucak, Tania Mitra, Margaryta Kirakosian on how private credit has propelled AAM AUM growth. 📌 PitchBook's Marie Kemplay on how big LPs are exerting influence in fundraising. 📌 PitchBook's Navina Rajan on resilient European VC valuations. 📌 PitchBook's Max Navas & Collin Anderson on fundraising challenges for emerging manager VCs. 💻 Who is hiring: Senior-level positions from companies NB Private Wealth (working directly with CIO Shannon Saccocia, CFA, CIMA®, an Alt Goes Mainstream podcast guest!), Apollo Global Management, Inc., iCapital, Goldman Sachs Asset Management, Canoe Intelligence, LemonEdge, Hamilton Lane, Isomer Capital. Subscribe 👇 to see the latest trends & navigate this rapidly changing landscape as alts go mainstream. https://lnkd.in/ee3-mYdn

Must read for asset management wonks from Steve Johnson of the Financial Times. Key stats: - US model portfolios are $5.1 Tr going to $11.3 Tr by the end of 2028. - #etfs now comprise 51%. - ETF only portfolios have grown 31% in two years while #mutualfund only portfolios have shrunk 8%. #hedgefund ETFs are essentially a greenfield opportunity. For instance, per the stats above, #cta ETFs, which have arguably greater diversification benefits than any other strategy, represent less than 0.01% of the model world. Similar stats apply to other strategies. Could be quite a decade for the likes of pioneers like Simplify Corey Hoffstein MOUNT LUCAS MANAGEMENT LP Man Group Jerry Parker WisdomTree Asset Management First Trust Bob Elliott And our partners at iM Global Partner Strap in!y ETFs surge to dominant position in US model portfolios https://on.ft.com/3Q4aK02

Evercore ISI, Research Division Senior MD & Senior Research Analyst Glenn Schorr and I drop the beat on F.R.E.A.M. in the latest Alt Goes Mainstream Going Public show. Hear Glenn discuss F.R.E.A.M. and why fees rule everything around me in alternative asset management, just like Wu-Tang Clan said in the '90s (C.R.E.A.M. - cash rules everything around me). We cover some of the most pressing topics in alternative asset management, including: * How alternative asset managers balance fee generation with returns. * Does major growth still lie ahead for alternative asset managers? * Why “fees rule everything around me,” but so does alpha generation. * Why does distribution (almost always) win in asset management? * What’s the most valuable aspect of a publicly traded alts manager having a public currency? * What is Glenn keeping his eye on for next quarter? https://lnkd.in/e5jagG9U

https://lnkd.in/er9JvR_N Private Markets Expansion BlackRock and State Street Global Advisors are spearheading initiatives to increase retail investor access to private markets, as an estimated $1 trillion in retail assets is expected to flow into alternatives over the next five years. State Street is collaborating with Apollo Global Management to launch a first-of-its-kind ETF combining public and private credit, while BlackRock has partnered with Partners Group to offer a multi-private markets portfolio solution. These efforts aim to democratize access to private equity, credit, and real assets, providing retail investors opportunities traditionally reserved for institutions. As private markets grow, they are seen as crucial to solving global challenges like infrastructure development and energy transition. However, with this growth comes heightened risks. Private credit, for example, poses significant liquidity and valuation challenges, as noted by Morningstar in relation to State Street's ETF. Compliance concerns have also emerged, particularly with Apollo serving as the originator, liquidity provider, and valuation agent, which raises potential conflicts of interest. Regulatory scrutiny, especially from the SEC, will be vital in ensuring that these new investment vehicles maintain transparency and manage risks effectively. Looking forward, both firms are expected to lead further innovations in private markets while navigating the regulatory and compliance landscape. BlackRock’s acquisition of Preqin, a private markets data provider, underscores the firm's ambition to improve transparency and measurement within private markets. As these initiatives expand, balancing innovation with robust risk management and compliance frameworks will be key to successfully opening private markets to a broader investor base. #BlackRock #StateStreet #ApolloGlobal #PrivateMarkets #Compliance

The US asset management giant BlackRock is betting big on private markets and is buying for GBP 2.55 billion (USD 3.2 billion), all in cash, the well-known British data provider specialising in private capital, Preqin Read all the details here https://lnkd.in/dWA5zTk9 Mark O'Hare Christoph Knaack Martin Small #privatecapital #privatemarkets #privateequity #privatedebt #venturecapital #distressedassets #realassets #realestate

They are not just great investors, but are great colleagues too. We’re proud to have been ranked #1 by Barron’s Best Fund Families in the Tax-Exempt Bonds category. Learn more: https://bit.ly/4cLO927 The ranking looks at one-year relative performance of fund firms that offer a diversified lineup of actively managed mutual funds and ETFs. The ranking eliminates index funds. Results are based on firms’ skill in active management. Ranking calculates returns before any 12b-1 fees are deducted. Similarly, fund loads, or sales charges are not included in the return calculations. 49 asset managers were included in Barron’s one-year ranking list for the year ending December 31, 2023. This ranking is not based on total return. The ranking is the opinion of Barron's and not Macquarie Group. No such person creating the ranking is affiliated with Macquarie Group. There can be no assurances that other providers or surveys would reach the same conclusions as this ranking.

BlackRock acquires Preqin for $3.2B Unpacking this from Larry Fink's annual letter early this year and various media sources. Portfolio of the future Investor demand is rising due to the democratization of alternatives and private markets. BlackRock strategy and acquisitions (eFront, GIP, Preqin) are positioned for these, with their platform Aladdin being the backbone that delivers data, analytics, risk and workflows across public and private markets. “BlackRock is helping investors build the “portfolio of the future” – one that integrates public and private markets and is digitally enabled. We view these changes as big catalysts. With the diversified investment and technology platform we’ve built, we’ve set ourselves up to be a structural grower in the years ahead. Aladdin. It remains the language of portfolios, uniting all of BlackRock, and providing the technological foundation for how we serve clients across our platform. And Aladdin isn’t just the key technology that powers BlackRock; it also powers many of our clients. The need for integrated data and risk analytics as well as whole portfolio views across public and private markets is driving annual contract value (ACV) growth.” https://lnkd.in/gaTFx63j. Value 13x expected 2024 revenue is not cheap. However, if private markets do grow as projected, then at the end of the decade, perhaps this might be much more palatable. The alternative of losing Preqin to either Bloomberg or S&P Global could have played a part as well. “Preqin was sold in a competitive auction run by Goldman Sachs bankers that drew interest from S&P Global and Bloomberg as its price climbed past initial estimates” Trends -         Private markets are the fastest-growing part of asset management, with alternative assets overall expected to reach nearly US$40 trillion by the end of the decade -         Democratization of alternatives and private markets, driven by data and indexes -         Acquisitions of financial data vendors continue with investors aiming to derive insights from data, especially with future developments of AI tools Sources https://lnkd.in/gjBAnTFM https://lnkd.in/gq_sufVh https://lnkd.in/gaTFx63j #investing #financialdata #privatemarkets #blackrock #preqin