- Asset Managers Aim to Bring Alts to Defined Contribution Plans vis CIT, Interval Fund Structures “The adoption of alternative investments in defined contribution, or DC, plans continues to be limited, but recent research from Cerulli Associates highlights how asset managers are seeking to make inroads via collective investment trust and interval fund structures. A collective investment trust, or CIT, structure is a group of pooled accounts held by a bank or trust company. The financial institution groups assets from individuals and organizations to develop a single larger, diversified portfolio.” (The DI Wire)
- Interval Funds on Pace to Reach $100 Billion Aggregate NAV by Year’s End “According to recent data by investment banking firm Robert A. Stanger & Co., Inc., interval funds had a combined aggregate net asset value of $93.4 billion at the close of the third quarter in 2024, an increase of 8.1% from the prior quarter and 27.2% since the end of 2023. In Q3 2024, five new funds became effective and 12 more filed new registration statements, bringing the total number of pending registrations to 34.” (The DI Wire)
- BlackRock Launches eFront Provider Tech Solution “BlackRock has created and launched eFront Provider, a newly integrated tech feature that enables real-time monitoring of private markets investor, fund and investment data. Financial service provider Apex Group has been onboarded as the first eFront Provider client. The eFront Provider product establishes an interconnected, two-way data flow between Apex and its private markets clients. eFront Provider adds to the asset manager’s widely used fund administration, investor servicing and data management capabilities for private markets asset servicers.” (Alternative Credit Investor)
- Liquidity and Options Pave the Way for Bitcoin ETF Market Expansion “Bitcoin ETFs have recorded a total net inflow of $18.9 billion and currently hold around 869k BTC. Bitcoin ETFs account for approximately 3% of the total bitcoin trading volume. A portion of the inflows into bitcoin ETFs is driven by the ‘basis trade’, where investors seek to profit from the price difference from the spot and futures price.” (CoinDesk)
- Can Bank Loan Funds Rise to the Top Again? “For many bond fund investors, bank loan funds provided shelter from the storm while the Federal Reserve raised interest rates. Now that rates are coming down, these funds are lagging the broader market. However, one specialist still sees opportunities in the sector. The main reason: Yields remain high enough that they make an attractive proposition.” (Morningstar)
- The Case for Lowering Duration in Fixed Income ETFs “With the Federal Reserve’s next interest rate meeting about a month away, investors may wish to take this time to reassess the duration of their bond portfolios and consider short-duration fixed income ETFs. As of now, it may be for the benefit of investors to keep their bond duration relatively low. Recent insights from Eaton Vance broke down why duration should stay low, despite the recent rate cut from the Fed.” (etftrends.com)
- Venture Capital Deal Activity Is Slowing Down “The big picture: Distributions to limited partners in VC funds haven't been this low since the Great Financial Crisis, sparking what PitchBook refers to as a ‘stalemate.’ LPs are hesitant (or unable) to back new funds until the liquidity spigot loosens, thus causing venture capitalists to slow their investment pace or stop investing altogether.” (Axios)
- Nuveen Private Capital Hires Ares Exec for Private Wealth Channel “Nuveen Private Capital, the private credit specialist unit within the asset management giant, named Moshe Bajnon to the newly created role of senior managing director, global head of private wealth. The appointment is effective Oct. 29 and he will be based in Churchill Asset Management's New York office.” (Alternatives Watch)
- What’s the Decade’s Most Successful ETF Launch? “We examine all ETFs launched in the U.S. between July 1, 2014, and June 30, 2024, including Exchange Traded Notes (ETNs), commodity ETPs, leveraged products and semi-transparent active ETFs. The analysis excludes ETFs that were converted from existing mutual funds, since these were not ‘greenfield’ launches. There were 3,246 ‘greenfield’ (non-converted) ETFs listed in the U.S. in the decade between July 1,2014 and June 30, 2024. These ETFs were classified into outcome buckets based on their peak assets between July 1, 2014, and September 30, 2024 (to give every ETF at least three months since launch).” (etf.com)
- Private Credit Fund Managers Embrace AI Despite Risk Warnings “Just a year ago, artificial intelligence (AI) was being touted as the next big thing in private credit. Today, it has firmly established itself as part of the private market ecosystem, in a variety of ways. Many investment houses are already relying on AI to automate their back-office processes and free up junior analysts to do more specialised work. However, a recent report by Moody’s found that AI has begun to be used in loan origination, causing the ratings agency to issue a warning to lenders.” (Alternative Credit Investor)
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