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Laxman Pai, Opalesque Asia:

The vast majority of investors plan to increase their private assets exposures over the next 12 months, amid a growing focus on the benefits of diversification, said a study.

90% of respondents confirmed allocations would rise in one or more areas of private assets through 2021, revealed Schroders' annual Institutional Investor Study that canvassed 750 institutional investors collectively managing $26.8 trillion.

"The 2021 results show that private assets continue to take a greater share of institutional portfolios. Given the strong momentum in allocations identified in previous years' results - and that many of the key challenges in liquid markets have persisted - this was perhaps to be expected. Even the global pandemic couldn't derail the momentum," said the report.

The study revealed the growing importance of private assets, with 47% of investors stating they will continue to diversify into alternatives and private markets and reduce their listed exposures, almost double the proportion of investors polled last year. Investors cited this decision was driven by the economic and financial impact of the pandemic.

Private equity remains the area attracting the most capital, and the second most popular asset class - infrastructure equity - is also unchanged from the previous year's study. However, 29% of investors this year also expect to invest more in impact strategies, something private assets are uniquely positioned to de......................

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