Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Amy Bensted, manager, hedge fund data

7203

Institutional investors revolutionise hedge fund industry

RELATED TOPICS​

Hedge fund managers are altering their fees, risk adjustment procedures and strategic offerings to attract institutional investors according to the latest Prequin study.

Institutional capital is at an all time high within the sector, and 85% of the 60 hedge fund managers interviewed believe that it will increase even more over the next 18 months.

The study showed that 46% of managers have put more risk management procedures in place as a result of having more institutional investors in their funds, while 42% have reduced the fees charged on funds. In addition, 21% have introduced alternatives to commingled funds to attract or maintain institutional interest,57% of respondents stated that over half of their assets come from the institutional sector, and 47% of managers have seen an increase in institutional capital over the past three years, increasing to 56% over five years.

Almost half of those surveyed plan to market specifically to the institutional sector in the coming 12 months, while some 15% expect to launch UCITS-structured hedge funds. Institutional investors are increasingly keen to take advantage of the transparency and liquidity requirements of these fund structures.

‘The consensus is clear: hedge fund managers are witnessing large inflows of capital from institutional investors, and are adapting their fund strategies and marketing accordingly," says Amy Bensted, manager, hedge fund data. "Smaller funds continue to find it more difficult to attract institutional investors, as many do not have sufficient assets under management to be a viable investment option for some of these investors. However, most fund managers are expecting more money from institutional coffers over 2011 and into 2012, suggesting that the proportion of institutional capital in the sector is due to grow even more over the next 18 months."

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by