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Laxman Pai, Opalesque Asia: A new survey of 500 institutional investors and wealth advisors from the U.S., the United Kingdom, Germany, Switzerland, and Japan revealed that 91% of institutional investors and wealth advisors plan to increase private market allocations, with a push for greater liquidity options.
"Institutional investors and wealth advisors can agree on one thing: that they are running behind when it comes to private market strategies," said the survey by the global financial services firm Brown Brothers Harriman (BBH).
The survey finds that the majority of investors (91%) plan to increase their holdings of private market alternatives within the next two years. This desire to increase is fueled by the fact that 94% feel they are under-exposed to private markets and need to catch up.
28% of investors believe that private markets outperform public markets and offer higher returns. Another 28% say they're most motivated by a view that these products protect against inflation.
Meanwhile, 23% are driven to invest based on diversification and reduced volatility compared to public markets. 21% primarily recognize the tax efficiency offered by these products.
The survey also found that geopolitical volatility makes private markets more attractive: 78% of respondents identified that geopolitical uncertainty increases their interest in private market alternatives.
"Although private asset strategies have seen exponential growth over the past ...................... To view our full article Click here
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