Of nell mackenzie
London (Reuters) – Half of the world investors surveyed by Bank of America’s Bank of Range Department Plan to assign more money to cover funds this year, while 37% did not want to change.
The results led to a 2% increase in those who want to spend more on coverage funds since the beginning of 2024, a report from the bank to customers showed on Friday.
The survey was obtained from 256 companies that oversaw a combined amount of more than $ 1 trillion invested in coverage funds.
Investors who reduce their coverage fund stakes, and money was reduced to 7% of 12% by 2023, said the report of the Bofa 2025 coverage fund perspective.
The dissatisfied investors thought that the yields should have been better, the bank said. Of the people who were not miserable, 73%cited a lower performance as a reason for wanting to redeem money.
Other reasons the investors were not miserable when the coverage funds changed their investment strategy and when the coverage funds simplified, or consolidated their portfolio, the survey said.
The allocators have also been concerned that their coverage funds accumulate in busy commercial positions where everyone has the same idea, according to the report. The busy positions can be expensive if the speculators rush to the exit at the same time.
Too large coverage funds to invest nefariously without their shops moving the market was also a main concern that had increased last year, according to the report.
Approximately the same investors who last year had the concern that the coverage funds they said specialized in a type of investment really made money doing something else, or the so -called drift of style, he said .
Talent was also named as a continuous concern.
Smaller coverage funds with less than $ 500 million in assets were a fifth less likely to go out.
Family offices, pension plans and the endowment and foundations were the most likely to remove all the money from the table, more than partially, according to the report.
By 2025, investors are more interested in actions and good operations, and less in trendy followers and systematic funds that reproduce in macroeconomic events.
These coverage funds were more successful in reducing rates compared to this time last year.
About 60% of investors won discounts of quotas compared to about half last year, and there was a slight up to 22% of 17% that obtained the most favorable terms of liquidity, which goes to them. Allow to buy and sell from your coverage fund investments less delayed.
(Report by Nell Mackenzie; edition of Dhara Ranasinghe and David Evans)