Poor Performance Prompts Reflection, But ARP Still Sees Inflows

It has been a year of reckoning for some alternative risk premia strategies, notably equity value and momentum, and in general there has been a dispersion in performance that has puzzled structurers, investors and consultants alike. But the performance figures seem to be bringing about a top-to-bottom reassessment of ARP: everything from how the strategies are labeled and measured to how they are designed and built is freshly under the microscope. Experts expect the industry will emerge stronger from 2018 and continue to attract significant inflows. Elinor Comlay spoke with consultants on the topic of dispersion of returns and what that means for inflows.