Laxman Pai, Opalesque Asia: Global institutional investors are bullish about the return potential from fixed-income hedge funds, revealed a study.
According to research commissioned by RBC BlueBay Asset Management, two-thirds of global institutional investors (63%) expect annual returns of 10% or higher from fixed-income hedge funds. This optimism is driven by strong financial performance, evolving fee structures, and greater levels of market liquidity.
Currently, 60% are invested in hedge funds, and of these, 84% are allocated to fixed-income strategies.
The report entitled "Shifting Strategies: How Institutions are Embracing Fixed Income Hedge Funds" surveys institutional investors' perceptions and intentions regarding alternative investment strategies including private credit, total return, and multi-strategy credit.
However, in contrast to investors' expectations looking forward, fewer than half (47%) of fixed-income hedge fund investors surveyed reported having earned double-digit returns. Fifty-two percent of investors said their annual fixed-income hedge fund performance ranged between 5-9%.
Fixed-income hedge funds have become mainstream among global institutional investors as they seek higher yields without liquidity. Of those who responded to the survey report, 60% are currently invested in hedge funds, and of these, 84% are allocated specifically to fixed-income strategies.
Comprising responses from 450 senior investment decision-makers ...................... To view our full article Click here
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