More investors are looking to decrease their allocation to hedge funds, with the appetite for non-traditional alternative asset classes starting to grow, according to EY. According to results from the EY 2017 Global Hedge Fund and Investor Survey, investors have demonstrated unwillingness to increase their target allocation in hedge funds. Only 11 per cent of investors said they planned to increase allocations to hedge funds in the next three years, compared with 18 per cent last year.
A majority of the remaining respondents (74 per cent) answered they would keep their allocations flat, with the other 15 per cent planning to decrease their allocation, up slightly since last year (13 per cent). These results were further evidence of an ongoing “trend that has played out for several years”, according to the report. “This trend is particularly pronounced among North American investors, of which 25 per cent reported expectations of future reductions,” the report said.
The rest of this article can be found at investordaily.com.au.