Alternatives charter assoc heads Down Under
Thursday, 11 September 2008 12:35pm
The rise and rise of alternative assets is pushing the need for specialists trained in the sector, said Craig Asche, chief executive of the Chartered Alternative Investment Analyst Association (CAIAA) when he visited Australia last week.
Asche said the CAIAA defines alternative investments as anything that is not a traditional long-only investment. The broader more global focus of these assets is also why their membership among Asian countries is expanding rapidly, especially in Singapore, Hong Kong and Korea.
Helping to drive this interest in alternative assets is the changing attitude to what institutional investors believe should be included in diversified portfolios, a shift in which Australia is playing a leading role, said Asche.
"Australian hedge funds have performed very well and are highly regarded around the world. In infrastructure, Australia is however well ahead. The US is just starting to catch up," he said.
Like in Australia, how and how often performance of alternative assets should be reported is major question in other markets as well, said Asche.
"Monthly reporting is the standard. There is a move to daily pricing but liquidity is actually a more important issue. This is why structured products are so important for some investors."
Asche said the Australian debate about what constitutes a "balanced" fund is nonetheless complex because "what's one person's balanced fund may not be another's".
The sophistication of the alternatives universe is why funds investing into the sector need to sufficiently experienced and qualified professionals on board, said Asche. To help meet this demand, the CAIAA will be increasing their focus on Australia and launching chapters in both Sydney and Melbourne.
Alex Dunnin
