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Laxman Pai, Opalesque Asia: Institutional investors in the post-covid market landscape may be looking to put more money toward multi-asset strategies and shifting money into private (away from the public) markets, said a survey.
According to Nuveen's inaugural "Global Institutional Investor Study", the pandemic is causing many institutional investors to shift the assets in their portfolios to alternatives and multi-asset solutions. They are also seeking clarity on environmental, social, and governance (ESG) as an alpha driver.
"In another signal of portfolio management challenge and opportunity for major institutions, investors are giving stronger consideration to the private markets for alternative investment strategies, while also grappling with significant hurdles to implementation," said the survey.
Eighty-six percent of institutional investors currently invest in alternatives and, of those now invested, two-thirds plan to increase their allocations in 2021, said Nuveen, the $1.2 trillion investment manager of TIAA.
Increasingly, many investors are directly sourcing their own investments, such as buying real estate or securing their own private equity deals; of those who currently have an alternative allocation, 80% are invested in real estate, 70% in private equity, and 63% in infrastructure.
More than half (55%) of alternatives investors said they plan to make a strategic shift away from the public to private markets in the next...................... To view our full article Click here
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