EY Releases Global Alternative Fund Survey
EY recently released the 2020 EY Global Alternative Fund Survey, In times of change, does accelerated adaptation present obstacles or opportunities? which covers important macrotrends impacting the alternative fund industry.
A spokesperson said, “Among the key findings, the alternative funds industry rose to the occasion surrounding the COVID-19 pandemic in terms of investors’ expectations and managerial performance.
“Investors generally felt that their alternative fund managers either met or exceeded their performance return expectations, with 58% of hedge fund investors and the majority [81%] of private equity investors noting that their managers met or exceeded performance expectations during the market volatility that occurred as a result of the pandemic.”
“Technology and innovation has long been a priority for the alternative fund industry and COVID-19 accelerated this trend with the abrupt shift to remote work,” commented Jeffrey Short, EY Partner and Regional Wealth & Asset Management Leader, EY Region of the Bahamas, Bermuda, British Virgin Islands and Cayman Islands. “Now, more than ever, managers need to prioritize innovation.”
The survey also found that investors are reasonably satisfied with their managers’ efforts to embrace technology and data. Hedge funds, in particular, were reviewed favorably, since over half [53%] of investors surveyed felt that the hedge fund industry was ahead of the curve from a technology perspective relative to other financial services. When considering credit and private equity, this number drops to 30% and 28%, respectively.
“The top priority for fund managers continues to be asset growth. Investors continue to maintain large alternative portfolios but shifts are occurring to asset classes like insurance linked securities which is encouraging from a Bermuda perspective. This year, especially given COVID-19, we saw sweeping changes in how companies approach digital transformation, and it was no different in the alternative fund industry,” commented Jessel Mendes, Partner at EY Bermuda Ltd. and Regional Private Markets Leader.
“Technological innovation came in two forms: The ability to use technology to improve performance and leveraging technology to keep workforces connected, collaborative and productive. As the survey shows, investors were generally pleased with the results.”
The complete survey is available here.”
