Institutional Investors Managed Accounts

Institutional Investors Managed Accounts

More Demand from Investors for Managed Accounts

Institutional investors are demanding more managed accounts and many fund of hedge funds are obliging.  A recent Preqin survey found that almost one fourth of institutional investors are seriously considering a first time allocation to a managed account structure in 2010.  Just 16% of those surveyed have already allocated funds to a managed account. 
Investors said greater transparency (41%), better liquidity terms (22%) and increased regulatory oversight (22%) were the main reasons for considering a managed account.

Managed accounts were most favoured by large institutional investors. Half of those surveyed with a hedge fund portfolio of $1 billion or more had already allocated assets to a managed account, compared to just 3% of investors with a portfolio of less than $100 million.

Managed accounts were most favoured by large institutional investors. Half of those surveyed with a hedge fund portfolio of $1 billion or more had already allocated assets to a managed account, compared to just 3% of investors with a portfolio of less than $100 million.
Over a third (38%) of respondents said managed accounts were too costly, while 11% said they did not have enough resources to invest in a managed account.  Source

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