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Laxman Pai, Opalesque Asia: U.S. institutional investors are looking to allocate more of their portfolios to alternative investments as a way to combat inflationary pressure, said a research report.
Opportunity exists for asset managers with a strong performance in alternative investments, particularly infrastructure and real estate investments, according to Cerulli's latest report, North America Institutional Markets 2022: Shifting Allocations Amid Market Uncertainty.
Boston-based Cerulli Associates says 44% of institutional investors want to increase their allocations to alternative investments. By contrast, just 24% of those surveyed said they plan to increase their exposure to equities.
In particular, institutional investors are eyeing infrastructure and real estate investments as a hedge against inflation. They also want to increase investments in private equity, private debt, and hedge funds to bolster returns, according to Cerulli Associates.
Asset owners also indicate an increase in private equity (20%), private debt (20%), and hedge funds (18%) to bolster returns.
"Institutional investors are operating in a significantly different market environment in 2022 than they had been over the last several years as a result of persistent inflation. Many institutions are evaluating investment options that help prevent decreases in assets or funded statuses," said Chris Swansey, senior analyst.
In addition to shifting allocations, the research points to a...................... To view our full article Click here
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