Investment managers with poorer performance through the Covid-19 crisis are set to see a high number of mandate losses, research suggests.
Hedge funds and smart beta investors were among the most dissatisfied with recent performance.
In a survey of 368 institutional investors and family offices, 48% said they were disappointed with hedge fund returns and 64% said the same for ‘alternative risk premia’, which is usually known as smart beta. Emerging market debt also disappointed 53% of investors, the Bfinance research showed.
As much as 54% of the asset owners are terminating or likely to terminate managers based primarily on their 2020 performance, including more than 80% of family offices.
Apart from hedge funds, smart beta and emerging market bonds, active strategies received positive feedback, Bfinance said, and the vast majority of investors – or 82% – said they were satisfied with how their portfolios had performed.
The survey was conducted in June and the results published in a Bfinance report called ‘Managing through uncertainty’.
Kathryn Saklatvala, head of investment content for bfinance, periods such as this year were “crucially informative” for…
