Hedge funds are under increasing pressure to offer a broader suite of products as the preferences of investors change, according to EY.
In the company’s 2016 Global Hedge Fund and Investor Survey, EY found 48 per cent of investors expected their hedge fund investments to move from traditional hedge fund products in to other alternatives.
“At a global level, we are seeing assets flowing to the managers that offer a wide array of non-traditional hedge fund products,” said EY Oceania hedge fund leader Jon Pye.
“Although investors have a broad appetite for real assets, private equity, long only funds and best ideas funds, only a small percentage of hedge funds currently offer these products.”
Growth is a priority for 56 per cent of fund managers, the survey found, but managers are increasingly looking to different strategies in order to achieve this, following the “unprecedented change” in investor appetite seen through the year.
EY Oceania wealth and asset management leader Antoinette Elias encouraged managers to align the product offering with investor needs, as investors now have more choice than ever in the alternatives space.
“While the largest managers are pursuing several growth strategies, we are beginning to see smaller managers adopt a narrower focus as they seek to expand investor bases within their home markets,” she said.
“Whichever approach they are taking, hedge fund managers of all sizes must make sure they are listening to their investors to keep pace with their changing needs, or risk being left behind.”
Wealth management relationships are under threat as clients look to switch providers driven by the impact of the royal commission. ...
S&P Dow Jones has announced a new addition to its global ESG index using enhanced ESG scores and granular data. ...
Investor confidence is on the rebound and the ASX hit a 12-year high on Monday. But it’s not all good news for the Australian economy. ...