Fundraising times inch downward
The U.S. expansion is getting long in the tooth, and investors are working to position their portfolios ahead of the expected downturn — or correction, if you prefer more positive language. But this defensive stance does not mean they are out of the market. It simply means they are being disciplined, and they would rather be underallocated than commit to a fund they are not happy with. The increase in core and core-plus funds, as well as debt funds, shows managers are listening and providing products that meet the industry’s needs. Because of this response, the time funds are on offer has continued to creep down.
The mean time for funds to be in the market has steadily fallen since 2013, with only a couple of relatively small blips. In 2013, the average fund was marketing for 21.3 months. Funds holding a final close in 2014 and 2015 had been marketing 18.7 months, on average. Those closing in 2016 had been open for 19.0 months. And those holding a final close in 2017 took