Opalesque Industry Update - Research for Preqins latest Investor Outlook has found that four out of five institutional investors invest in at least one
alternative asset class. Private equity, hedge funds and real estate are the most targeted alternative asset classes,
with over half of investors having an allocation to each of them in their portfolios. Although the benefits vary
significantly between asset classes, common reasons cited by investors for holding allocations to alternative assets
include diversification, high returns, reliable income streams and inflation hedging characteristics. Investment in almost all asset classes is likely to increase over the coming year. In particular, 42% of private equity investors, 38% of private debt investors, and 36% of infrastructure investors plan to invest more capital in the next 12 months than they have in the previous year. A third of hedge fund investors are looking to invest less capital over the coming year compared to the last 12 months, compared to 19% that are looking to invest more. Key Findings from Preqins Latest Investor Survey:
Institutional investors allocate to alternative assets to diversify their portfolios and to achieve a broad range of other objectives. The high absolute returns generated by private equity, hedge funds ability to reduce volatility, the reliable income generated by private debt and the inflation-hedging characteristics of real assets are just some of the attractions for sophisticated investors, commented Mark OHare,CEO of Preqin. It is clear that the institutional community remains confident in the ability of alternative assets to help them meet their return objectives. The majority feel returns are meeting or exceeding expectations and, as a result, a much larger proportion of investors plan to increase their exposure to alternatives than plan to reduce it. There remains huge scope for the alternative assets industry to grow in future years, both as investors build up existing allocations, and as they also further diversify their portfolios to include a wider range of asset classes." Full press release here: Article source - Opalesque is not responsible for the content of external internet sites |
Industry Updates
79% of institutional investors globally invest in at least one alternative asset class
Thursday, August 20, 2015
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