Fri, Aug 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

State Street reports an increased appetite for alternatives from institutions

Monday, December 31, 2012

Beverly Chandler, Opalesque London: A new report from State Street, The Asset Owner’s Perspective: Evolving Investment and Operational Models, finds that 45% of asset owners have found that low yields on traditional assets have increased their organisation’s appetite for alternatives, particularly among institutions at the smaller end of the market.

However, examination of the endowment model post the financial crisis, revealed that the users of the endowment system were disappointed at the high level of correlation between alternative assets and equity markets during the crisis. Despite that, the endowment model remains popular with 84% considering the model a highly effective framework for today’s markets.

Leverage and liquidity issues also challenged some asset owners, who are addressing the liquidity crunch by undertaking more vigorous stress testing and revisions of liquidity-related investment policies.

Some 39% of those asset owners surveyed expect to increase allocations to corporate investment-grade debt, while 30% anticipate expanding allocations to emerging market debt investments in the coming year.

The study found that asset owners have developed a new 'mindset’ post the financial crisis, looking at portfolios in their totality, moving away from tradi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest