Australian retail investors have been historically limited where market neutral strategies are concerned, but will benefit moving forwards from a number of globally orientated strategies which are becoming available, according to Zenith.
Following the release of the Zenith Market Neutral Sector Review, Zenith lead analyst, Justin Tay, said there were new ratings on global strategies for Australian investors, which would see the traditional low access slashed.
“Over the past two years, Zenith has observed a number of globally orientated market neutral strategies becoming available to Australian investors. We have initiated new ratings on such funds,” Tay said.
“We continue to see new Australian orientated market neutral funds come to market, two of which we have initiated ratings on.”
The combined value of the four funds added would equate to approximately $3.7 billion and be a notable addition for the sector.
Tay said that the increase of market neutral capacity would help retail investors, who would otherwise be locked out of the market over the next two years.
“It has not been surprising to see a number of these longer-standing offerings reach capacity and close to new investment,” he said.
“With the strong levels of FUM growth experienced by the sector in recent years, Zenith has projected that this capacity will be fully exhausted by 2018.”
