Trium Capital head of distribution Rosie Duffell on the importance of liquidity, focusing on solutions not products and building resilient client relationships
Where – and why – are you anticipating demand or fund-flows from UK-based wealth managers and their clients over the next 12 months?
We expect demand over the next 12 months to remain focused on liquid alternatives that can genuinely diversify traditional equity and bond portfolios, while being able to play a key role in drawdown management.
UK wealth managers, as well as investors around the globe, are operating in a much less stable macro environment. The Iran conflict has added a fresh energy and inflation shock, the conflict in Ukraine remains an ongoing source of geopolitical risk and broader monetary and fiscal policy uncertainty is forcing investors to think a lot more about resilience as opposed to simply chasing beta.
In this environment, we believe UK wealth managers will continue to favour strategies that offer true uncorrelated return streams, robust risk management and, crucially, liquidity. Investors want access to alternative sources of return, but with transparency and flexibility – especially in an environment where some parts of the alternatives universe still require capital to be locked up for longer than many wealth clients are comfortable with.
How are you planning to address and serve that interest?
We are addressing that interest by focusing on how our range of liquid alternative strategies can be deployed flexibly to solve real portfolio problems. For many UK wealth managers, the question is no longer whether to use alternatives, but how to implement them alongside existing allocations without sacrificing transparency or liquidity – all at a fair price/fees.
At one end of that spectrum, our multi‑strategy Ucits solution could play a central role in portfolios. It offers a single, diversified allocation point with active capital allocation across uncorrelated strategies, daily liquidity and a strong focus on drawdown control. For many clients, that acts as a core alternative holding.
On the other end, clients may want to use liquid alternatives to solve for particular challenges – be it a cash alternative with strong, positive convexity in times of stress, or a sector-specific alpha generator that can be market-neutral.
At the same time, we are increasingly seeing demand from wealth managers for greater customisation and transparency, including interest in segregated mandates and tailored exposures. Our existing experience working with a number of key industry players, including major managed account platform providers and investment consultants, means we are well-placed to engage on this basis – allowing allocators to access specific strategies, control sizing more precisely and integrate alternatives more directly into their broader portfolio construction framework.
Across both approaches, the emphasis is on engagement and flexibility rather than prescription. We spend time with clients discussing how different strategies behave, how capital can be reallocated as conditions change, and how liquidity is managed in practice, recognising that wealth managers value optionality and responsiveness, particularly during periods of market stress.
Are you seeing a divergence in the demands of UK wealth managers versus, for example, their peers in Europe or on the institutional side in the UK?
Yes. When it comes to liquid alternatives, we are seeing a clearer divergence between UK wealth managers and their European counterparts, across both the regional and national segments. UK regional wealth managers tend to prioritise cost, access and transparency, alongside a greater willingness to allocate earlier to newer, smaller and more entrepreneurial funds.
Within the UK national wealth manager segment, meanwhile, there is a more pronounced shift towards institutional-style solutions. This includes large-scale outsourcing arrangements, increased use of managed accounts and more centralised approaches such as multi-asset or alternatives-focused funds of funds.
By contrast, European allocators show a stronger preference for larger, more established institutional funds. Sustainability considerations also remain prevalent, with Sustainable Finance Disclosure Regulation status continuing to influence some allocation decisions.
As a business, how do you define ‘alternative’ and ‘private’ assets and to what extent should asset managers be looking to service investor demand here?
We define alternatives very simply as strategies whose returns are driven by skill – that is, alpha – rather than market direction, and which behave differently from traditional markets.
Private assets clearly have a role, but we think it is important for managers and distributors to be honest about liquidity, valuation and time horizons. Not every investor needs – or wants – long‑dated, illiquid exposure. In most cases, liquid alternatives can deliver diversification and downside protection without sacrificing on risk-adjusted returns.
‘ESG is dead – long live ESG 2.0’ – your thoughts as a distributor, please?
We do not see ESG as dead but we do see a clear shift in how it is being implemented and assessed. The early phase of ESG was dominated by exclusion lists and labels – what investors are now demanding is credibility, intentionality and measurable impact.
From a distribution perspective, interest has not disappeared but it has become more selective. Allocators are far more focused on how ESG is expressed through the investment process, whether engagement genuinely drives change and performance and whether sustainability objectives can sit alongside, rather than compromise, returns. That plays directly to our approach.
Across our two sustainability-focused Equity Market Neutral strategies, the emphasis is on engagement‑led investing and real‑world outcomes. Take our emissions reduction and energy transition strategy – rather than avoiding high‑emitting sectors altogether, we see opportunity in backing companies that are capable of improvement and re‑rating through credible transition pathways. That is a more nuanced and, in our view, more investable interpretation of ESG.
‘ESG 2.0’ is therefore less about labels and more about evidence and accountability. For distributors, that means being clear about what a strategy is trying to achieve, how progress is measured and where it fits in a portfolio.
What drives your approach to client communication? And is there a case for focusing on attracting the ‘right’ type of client?
Our approach to client communication starts from the belief that management fees are paid not just for returns, but for access to investment judgement and decision‑making. Clients want to understand how portfolio managers think, how they respond to changing conditions and how they make trade‑offs – particularly in challenging markets.
That is why we place emphasis on engagement that goes beyond periodic updates. We want to give clients visibility into investment thinking as it evolves, including through formats that allow managers to explain ideas, risks and positioning in their own words. The aim is not to provide constant ‘noise’ but to give clients a clearer sense of how strategies are run and why decisions are made.
There is very much a case for focusing on the ‘right’ type of client. We are not looking for fast money. Alternatives work best with investors who understand that short‑term exceptions can occur, but who are comfortable that a strategy will behave as described over a medium‑term horizon. When expectations around time horizon, liquidity and behaviour are aligned upfront, relationships are far more resilient – especially during periods of market stress.
Outside of work, what is the strangest thing you have ever seen or done?
Spending a night camping in the desert with no phone signal or light pollution. Seeing the scale of the night sky in that environment was both disorienting and memorable.
May we have two book recommendations, please – ideally, one with an investment connection?
One investment-related book I would recommend is The Most Important Thing by Howard Marks. It offers a clear and practical framework for thinking about risk, cycles and second-level thinking – concepts that are highly relevant across market environments. For a broader read, I would suggest Shoe Dog by Phil Knight. While not an investment book, it provides valuable perspective on building a business, resilience and decision-making under uncertainty, which are all equally applicable in investment management.
Gazing into your crystal ball, what does the asset management sector look like 10 years from now?
I think we will see more specialised asset managers, with much clearer propositions and a stronger focus on solving specific client problems rather than selling standardised products. Distribution will be less about product pushing and far more about how strategies are implemented, customised and integrated into portfolios.
In particular, I expect continued growth in segregated mandates and tailored solutions – especially within hedge funds. Wealth managers increasingly want control over sizing, transparency over exposures and the ability to adapt allocations as conditions change. Managers that can offer flexibility – whether through segregated managed accounts, customised sleeves or strategy‑specific mandates – will be better placed than those relying solely on one‑size‑fits‑all vehicles.
That shift will also require a much higher level of transparency, especially in hedge funds. Investors will expect clearer insight into portfolio construction, risk concentrations and liquidity – not as a regulatory exercise, but as part of an ongoing partnership.
Technology will support that evolution but the differentiators will still be investment judgement, operational robustness and credibility. The managers that succeed will be those willing to be more open, more tailored and more aligned with how clients actually allocate capital, while resisting the temptation to chase every new trend.
“In this environment, UK wealth managers will continue to favour strategies that offer true uncorrelated return streams, robust risk management and, crucially, liquidity.
