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Laxman Pai, Opalesque Asia: Institutional investors said they were ramping up their allocations to private assets from 12.8% a year ago to 14.1% over the next 12 months, with 46% stating that an increase in their allocation to private assets would help manage risk.
Schroders' Institutional Investor Study 2020 has found that private equity, infrastructure equity, and private debt were cited by investors as the main three private asset classes to which they intend to increase allocations over the next three years.
Indeed, 71% of investors said Covid-19 had prompted them to look for undervalued assets while 26% said they would continue to diversify into alternatives and private markets in a bid to reduce their exposure to listed assets.
The study - which spanned 650 institutional investors globally, managing $25.9 trillion in assets - revealed that the vast majority of investors (79%) believed a global economic slowdown would have the biggest impact on their portfolio performance over the next 12 months.
The number of investors confident of securing their anticipated returns has dropped significantly from 52% in 2019 to 33% in 2020, it said.
Georg Wunderlin, Schroders' Global Head of Private Assets, said: "The Institutional Investor Study shows that investors continue to be attracted to private markets to increase diversification and access specialized, alternative return streams. These characteristics become especially valuable at times when the global outloo...................... To view our full article Click here
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