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Laxman Pai, Opalesque Asia: Canadian institutional investors are seeking to further increase their overall allocations to alternative investment strategies, including hedge funds, real estate, private equity, infrastructure and private debt, said a study.
Investors are focussing on transparency, fee compression, ESG factors and more as they lead a global race for alternative investments, revealed a new study published by CIBC Mellon.
The report, "Race for Assets: Canada vs the World," found that among the various alternative sub-asset classes, real estate (42%) is most favoured among Canadian investors surveyed, followed by infrastructure (20%), private equity (18.7%), private debt / loans (17.9%), and hedge fund investments (1.4%).
Private equity led the way in terms of satisfaction, with 47 % of respondents saying performance exceeded expectations and the remainder finding the class performing as expected.
"Alternatives continue to gain momentum among Canada's institutional investors as they seek investments that can shelter their capital from short-term risks and market movements while also generating strong returns, though we are seeing Canadian investors becoming more particular about how they deploy their capital," said Jon Lofto, Director, Alternatives, CIBC Mellon.
Key findings of the study
More than half of respondents (58%) expect allocations to alternatives among Canadian investors to increase over...................... To view our full article Click here
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