Affluent investors are shifting to newly launched hybrid specialised investment funds. These vehicles offer tax efficiency and stronger returns than traditional fixed-income options.
Hybrid SIFs combine debt, equity and derivatives in single portfolios. They have drawn significant assets under management, with hybrid strategies taking the lead among new offerings.
The main draw is equity-linked taxation treatment paired with reduced volatility. This structure delivers higher post-tax yields for high-net-worth individuals and family offices.
Demand has grown as investors seek alternatives to lower-yielding fixed-income products amid changing market conditions.