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Laxman Pai, Opalesque Asia: According to a new research report by quant technology provider SigTech, 66% of investors expect to increase their allocation to hedge funds over the next two years. This trend is particularly noticeable among larger institutional investors.
A majority of institutional investors anticipate the higher volatility regime persisting and expect to generate stronger returns over the next two years compared with the past decade, said the SigTech Institutional Investors Report 2022, which surveys more than 100 leading institutional investors from around the world to gain an understanding of their current market outlook and its implications for existing portfolio allocations.
63% of investors surveyed identified inflation as the most significant portfolio risk, with rising interest rates second, it said.
Meanwhile, 80% of investors expect to increase their budget for data and tech infrastructure over the next two years. 69% of investors plan to increase the level of assets managed in-house, it said.
"Against a backdrop of abrupt changes to the macroeconomic environment, a sharp shift is underway within the financial markets, which has forced institutional investors to reassess their asset allocations," said Daniel Leveau, SigTech's VP of Investor Solutions. "It is no surprise that there is a strong desire to improve on the status quo by embracing both new investment ideas and technological innovations."
The report also found that the stron...................... To view our full article Click here
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