S&P’s Alternative Strategies Multi-Asset Sector Review finds no change in rating outcomes for managers


Standard & Poor’s Fund Services today released its ratings on the 10 strategies reviewed in the Alternative Strategies Multi-Asset – Diversified Multi Manager and Multi Strategy peer groups.

No fund ratings have changed for managers returning from the previous year’s sector review. The peer groups cover funds-of-hedge-funds and multiple strategy single-manager offerings.

S&P Fund Services analyst, Michael Armitage said: “Fund performances over 12 months to December 2011 were mixed depending upon a strategy’s equity market correlation. Strategies with more long equity market exposure exhibited positive performance in the fourth quarter of 2011 in line with general equity market performance”. 

Generally, funds-of-hedge-fund indices experienced slightly negative to flat performance over the course of 2011—which was a difficult environment for many alternative styles. Several managers outperformed in these conditions, including Dexia Alpha Dynamic and HFA International Shares funds.” 

“The stability shown in our ratings underscores our previous conviction in the peer group offerings. Major themes of this year’s review continue to focus upon liquidity of underlying holdings and ‘truer’ alternative return profile strategies in fund-of-fund portfolios,” said Mr Armitage.

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