Institutional investors and wealth managers are increasingly turning towards yield-focused strategies in anticipation of a potential stock market correction, according to new research by CrossLedger Capital. The study, which surveyed 200 institutional investors across 13 countries, found that 96% plan to enhance their yield focus over the next two years, with 83% citing expectations of a market correction as a primary motivator.
The research highlights a significant shift in investment strategies, with 61% questioned in the US, UK, UAE, EU, Brazil, Singapore, South Korea, Switzerland and Hong Kong say 25% or more of their portfolio is already focused on delivering yield.
Furthermore, 13% of those surveyed have dedicated between 50% and 75% of their portfolios to such strategies. This trend is expected to drive increased interest in digital assets, which are seen as a viable option for delivering yield.
Graham Cooke, CEO and Founder of Brava, commented on the findings: “Concerns about a stock market correction are building and that is reflected in the growing interest in yield-focused strategies and potential changes in institutional portfolios over the next two years.”
CrossLedger Capital, a Cayman-regulated credit fund, offers secure access to crypto markets without the volatility, leveraging institutional-grade infrastructure and partnerships with leading custodians like Fireblocks and Northern Trust. The fund aims to provide annual returns of 8%–12% through diversified, risk-adjusted strategies.
As investors brace for potential market shifts, the openness to exploring new asset classes is evident, with 89% of respondents expressing a willingness to consider alternatives for yield generation. This evolving landscape underscores the growing role of digital assets in institutional investment portfolios.
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