Hedge funds and institutional investors, including pension funds and insurers, are changing how they invest and manage risk because of lower liquidity - a "secular shift" in the market that they expect to stay.

More than three-fifths of respondents to a global survey by State Street and trade body the Alternative Investment Management Association said that their investment strategy had changed because of lower liquidity, with nearly a third saying the impact is significant and that they are reassessing risk management in their portfolios.