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RBC Global Asset Management: Global Investor appetite for fixed income hedge funds surges, research reveals
RBC Global Asset Management: Global Investor appetite for fixed income hedge funds surges, resear...
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[{"type":"text","content":"\n\n\n\n RBC Global Asset Management: Global Investor appetite for fixed income hedge funds surges, research reveals\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n MINNEAPOLIS\n \n\n ,\n \n\n Feb. 25, 2025\n \n\n /CNW/ - Global institutional investors are feeling bullish about the return potential from fixed income hedge funds, according to research commissioned by RBC Global Asset Management. The report revealed that nearly two-thirds of global institutional investors (63%) expect annual returns of 10% or higher from fixed income hedge funds.\n \n\n 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%.\n \n\n 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.\n \n\n Comprising responses from 450 senior investment decision-makers from asset owners across the US,\n \n Europe\n \n , and\n \n Asia\n \n managing assets of between\n \n US$5 billion\n \n and more than\n \n US$100 billion\n \n , the report found several factors underpinning the demand for fixed income hedge fund strategies. These include historically strong financial performance (65%) – rising to 84% in\n \n Asia\n \n and 70% in the US – evolving fee structures (48%) and greater levels of market liquidity (45%).\n \n\n In\n \n November 2024\n \n , the inaugural report entitled\n \n '\n \n Shifting Strategies: How institutions are embracing fixed income hedge funds\n \n '\n \n surveyed institutional investors' perceptions and intentions regarding alternative investment strategies including private credit, total return, and multi-strategy credit.\n \n\n In the case of hedge funds, 55% reported that t...