RBC Global Asset Management: Global Investor appetite for fixed income hedge funds surges, research reveals
RBC Global Asset Management research reveals strong institutional investor confidence in fixed income hedge funds, with 63% expecting annual returns of 10% or higher, though only 47% reported actually achieving double-digit returns. The survey of 450 senior investment decision-makers managing assets between $5 billion and $100+ billion found that 60% currently invest in hedge funds, with 84% of these allocated to fixed-income strategies.
Key factors driving demand include strong historical performance (65%), evolving fee structures (48%), and greater market liquidity (45%). The report, 'Shifting Strategies: How institutions are embracing fixed income hedge funds', found 55% of investors have a more positive opinion of these strategies, with 36% planning to fund through new inflows.
Investors identified geopolitical tensions (60%), interest rate policies (58%), and volatile equity markets (48%) as the main factors impacting fixed income in the next 3-5 years. Asset class (69%) and return predictability (59%) are top priorities when assessing potential allocations.
La ricerca di RBC Global Asset Management rivela una forte fiducia degli investitori istituzionali nei fondi hedge a reddito fisso, con il 63% che si aspetta rendimenti annuali del 10% o superiori, sebbene solo il 47% abbia effettivamente riportato rendimenti a doppia cifra. L'indagine condotta su 450 decisori senior in ambito investimenti, che gestiscono attivi tra 5 miliardi e oltre 100 miliardi di dollari, ha mostrato che il 60% investe attualmente in fondi hedge, con l'84% di questi allocato a strategie di reddito fisso.
I principali fattori che guidano la domanda includono una forte performance storica (65%), strutture tariffarie in evoluzione (48%) e una maggiore liquidità di mercato (45%). Il rapporto, 'Strategie in Evoluzione: Come le istituzioni stanno abbracciando i fondi hedge a reddito fisso', ha rivelato che il 55% degli investitori ha un'opinione più positiva su queste strategie, con il 36% che pianifica di finanziare tramite nuovi afflussi.
Gli investitori hanno identificato le tensioni geopolitiche (60%), le politiche sui tassi d'interesse (58%) e i mercati azionari volatili (48%) come i principali fattori che influenzeranno il reddito fisso nei prossimi 3-5 anni. La classe di attivo (69%) e la prevedibilità dei rendimenti (59%) sono le principali priorità quando si valutano le allocazioni potenziali.
La investigación de RBC Global Asset Management revela una fuerte confianza de los inversores institucionales en los fondos de cobertura de renta fija, con un 63% que espera rendimientos anuales del 10% o más, aunque solo el 47% reportó haber logrado rendimientos de dos dígitos. La encuesta a 450 tomadores de decisiones senior en inversiones que gestionan activos entre 5 mil millones y más de 100 mil millones de dólares encontró que el 60% invierte actualmente en fondos de cobertura, con el 84% de estos asignados a estrategias de renta fija.
Los principales factores que impulsan la demanda incluyen un fuerte rendimiento histórico (65%), estructuras de tarifas en evolución (48%) y una mayor liquidez en el mercado (45%). El informe, 'Estrategias en Cambio: Cómo las instituciones están adoptando fondos de cobertura de renta fija', encontró que el 55% de los inversores tiene una opinión más positiva sobre estas estrategias, con un 36% que planea financiar a través de nuevos flujos.
Los inversores identificaron tensiones geopolíticas (60%), políticas de tasas de interés (58%) y mercados de acciones volátiles (48%) como los principales factores que impactarán en la renta fija en los próximos 3-5 años. La clase de activo (69%) y la previsibilidad de los rendimientos (59%) son las principales prioridades al evaluar asignaciones potenciales.
RBC 글로벌 자산 관리의 연구에 따르면 채권 헤지 펀드에 대한 기관 투자자의 신뢰가 강하게 나타났으며, 63%가 연간 10% 이상의 수익률을 기대하고 있지만, 실제로 두 자릿수 수익을 달성한 투자자는 47%에 불과합니다. 5억 달러에서 1천억 달러 이상의 자산을 관리하는 450명의 고위 투자 결정자를 대상으로 한 조사에서 60%가 현재 헤지 펀드에 투자하고 있으며, 이 중 84%가 채권 전략에 할당되어 있습니다.
수요를 이끄는 주요 요인은 강력한 역사적 성과(65%), 진화하는 수수료 구조(48%), 그리고 더 큰 시장 유동성(45%)입니다. 보고서 '전략 변화: 기관들이 채권 헤지 펀드를 수용하는 방법'에 따르면, 55%의 투자자가 이러한 전략에 대해 더 긍정적인 의견을 가지고 있으며, 36%는 새로운 유입을 통해 자금을 조달할 계획이라고 합니다.
투자자들은 지정학적 긴장 (60%), 금리 정책 (58%), 변동성이 큰 주식 시장 (48%)을 향후 3-5년간 채권에 영향을 미치는 주요 요인으로 지목했습니다. 자산 클래스 (69%)와 수익 예측 가능성 (59%)은 잠재적 할당을 평가할 때 가장 중요한 우선 사항입니다.
La recherche de RBC Global Asset Management révèle une forte confiance des investisseurs institutionnels dans les fonds de couverture à revenu fixe, avec 63 % s'attendant à des rendements annuels de 10 % ou plus, bien que seulement 47 % aient déclaré avoir réellement atteint des rendements à deux chiffres. L'enquête menée auprès de 450 décideurs seniors en matière d'investissement gérant des actifs compris entre 5 milliards et plus de 100 milliards de dollars a révélé que 60 % investissent actuellement dans des fonds de couverture, dont 84 % sont alloués à des stratégies de revenu fixe.
Les principaux facteurs qui stimulent la demande incluent une forte performance historique (65 %), des structures de frais évolutives (48 %) et une plus grande liquidité sur le marché (45 %). Le rapport, 'Changement de Stratégies : Comment les institutions adoptent les fonds de couverture à revenu fixe', a révélé que 55 % des investisseurs ont une opinion plus positive sur ces stratégies, 36 % prévoyant de financer par de nouveaux flux.
Les investisseurs ont identifié les tensions géopolitiques (60 %), les politiques de taux d'intérêt (58 %) et les marchés boursiers volatils (48 %) comme les principaux facteurs ayant un impact sur le revenu fixe au cours des 3 à 5 prochaines années. La classe d'actifs (69 %) et la prévisibilité des rendements (59 %) sont les principales priorités lors de l'évaluation des allocations potentielles.
Die Forschung von RBC Global Asset Management zeigt ein starkes Vertrauen institutioneller Investoren in Fonds für festverzinsliche Wertpapiere, wobei 63% jährliche Renditen von 10% oder mehr erwarten, während nur 47% tatsächlich zweistellige Renditen erzielt haben. Die Umfrage unter 450 leitenden Entscheidungsträgern im Investmentbereich, die Vermögenswerte zwischen 5 Milliarden und über 100 Milliarden Dollar verwalten, ergab, dass 60% derzeit in Hedgefonds investieren, wobei 84% dieser Mittel in festverzinsliche Strategien fließen.
Die Hauptfaktoren, die die Nachfrage antreiben, sind eine starke historische Leistung (65%), sich entwickelnde Gebührenstrukturen (48%) und eine größere Marktliquidität (45%). Der Bericht 'Strategiewechsel: Wie Institutionen festverzinsliche Hedgefonds annehmen' ergab, dass 55% der Investoren eine positivere Meinung zu diesen Strategien haben, wobei 36% planen, durch neue Zuflüsse zu finanzieren.
Investoren identifizierten geopolitische Spannungen (60%), Zinspolitik (58%) und volatile Aktienmärkte (48%) als die Hauptfaktoren, die in den nächsten 3-5 Jahren Auswirkungen auf festverzinsliche Anlagen haben werden. Die Anlageklasse (69%) und die Vorhersehbarkeit der Renditen (59%) sind die wichtigsten Prioritäten bei der Bewertung potenzieller Zuweisungen.
- 63% of institutional investors expect annual returns of 10%+ from fixed income hedge funds
- 60% of surveyed investors currently invested in hedge funds
- 84% of hedge fund investors allocated to fixed-income strategies
- 55% of investors have more positive opinion of hedge fund strategies
- 36% plan to fund hedge funds through new inflows
- 61% plan to evolve their exposure to hedge funds in next 12 months
- Only 47% of fixed income hedge fund investors reported actually earning double-digit returns
- 52% reported annual fixed income hedge fund performance of only 5-9%
- 25% plan to decrease allocations to other alternative strategies to fund hedge funds
Insights
RBC Global Asset Management's latest research reveals a significant expectation-reality gap in the fixed income hedge fund space. While 63% of institutional investors anticipate annual returns of 10% or higher, historical performance shows only 47% have actually achieved such results. This 16 percentage point disparity signals potential overconfidence among institutional allocators that could lead to disappointment if market conditions don't cooperate.
The survey's timing is strategic for RBC, coinciding with growing institutional dissatisfaction with traditional fixed income returns. With 60% of respondents already invested in hedge funds and 84% of those specifically targeting fixed-income strategies, RBC is positioning itself to capture market share in this growing segment by demonstrating thought leadership through this research.
Regional variations reveal fascinating insights into institutional investment psychology. Asian investors' overwhelming emphasis on historical performance (84% versus the global average of 65%) suggests a more backward-looking investment approach compared to European counterparts, who may be placing greater emphasis on forward-looking metrics and structural factors.
The planned allocation shifts represent a meaningful rotation within alternative investments. With 36% funding through new inflows and 25% decreasing other alternative allocations, we're seeing a net positive sentiment toward fixed income hedge strategies at the expense of other alternatives – likely including private equity, where recent performance has disappointed many institutional investors.
The macroeconomic drivers cited – geopolitical tensions, interest rate policies, and equity volatility – create precisely the conditions where fixed income hedge funds theoretically excel. These strategies can capitalize on dislocations through tactical positioning while maintaining the ability to hedge downside risks. However, the high return expectations (10%+) may prove challenging to meet consistently, especially as more capital flows into the space potentially compressing alpha opportunities.
For RBC specifically, this research serves as both market intelligence and strategic positioning. By highlighting institutional appetite for these strategies, RBC can better tailor its product development while simultaneously showcasing its BlueBay unit's capabilities in this exact space – a shrewd approach to thought leadership that doubles as marketing.
However, in contrast to investors' expectations looking forward, fewer than half (
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,
Comprising responses from 450 senior investment decision-makers from asset owners across the US,
In November 2024, the inaugural report entitled 'Shifting Strategies: How institutions are embracing fixed income hedge funds' surveyed institutional investors' perceptions and intentions regarding alternative investment strategies including private credit, total return, and multi-strategy credit.
In the case of hedge funds,
Commenting on the findings, Polina Kurdyavko, a hedge fund manager and head of BlueBay Emerging Market Debt, at RBC Global Asset Management, said:
"We believe we are in the golden age for fixed income hedge funds. Geopolitical tensions and interest rate policies continue to be top of mind for investors, and the resulting uncertainty is likely to create volatility in the markets. We believe funds that can play the markets from both the long and short side are particularly well placed to capitalise on the mis-pricings and inefficiencies created by this volatility to deliver positive returns, regardless of the market direction."
Other highlights include:
- Geopolitical tensions (
60% ), interest rate policies (58% ) and highly volatile equity markets (48% ) were identified by investors as the three main factors they think will impact fixed income in the next 3-5 years. - Asset class (
69% ) and predictability/volatility of returns (59% ) are the two priority factors for investors when assessing potential allocations investments into fixed income hedge funds. 42% of investors plan to consider higher yielding assets because of macroeconomic expectations for the year ahead, with48% expecting target returns of between10% -19% from their managers.61% of institutional investors plan to evolve their exposure to hedge funds and59% to private credit (e.g. specialist situations, securitised credit, distressed debt) over the next 12 months.
For more detail about the survey findings, please follow this link: http://institutional.rbcgam.com/alts-survey.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC). RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. RBC Funds, BlueBay Funds, PH&N Funds and RBC ETFs are offered by RBC Global Asset Management Inc. (RBC GAM Inc.) and distributed through authorized dealers in
Contact
Fatima Kasraie, ffarhatkasraie@bluebay.com
Tony Catinella, tony.catinella@rbc.com
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SOURCE RBC Global Asset Management (U.S.)
FAQ
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