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Laxman Pai, Opalesque Asia: More than nine-out-of-ten (93 percent) global institutional investors consider ESG and sustainability in their real asset investment decisions, with 17 percent considering it a critical factor, said a study.
According to research from global asset manager Aviva Investors, 64 percent of institutional investors plan to increase their allocations to real assets over the next two years, with 46 percent planning to do so by up to 10 percent.
The findings form part of the fifth annual 'Real Assets Study' from Aviva Investors, which canvassed views from 500 institutional investors around the world, including pension funds, insurers, global financial institutions, and official institutions, together representing more than $3.5 trillion in assets.
According to the study, the highest allocations are by investors in North America, where almost a quarter have greater than 20 percent of their portfolio in real assets, compared to 19 percent of European and 17 percent of Asia Pacific investors.
Whilst diversification remains the primary driver for investing in real assets according to 57 percent of respondents, the ability of these strategies to provide inflation-linked income is increasingly driving allocations. Aviva Investors' research reveals 53 percent of respondents allocate to real assets for their ability to provide inflation-linked income, versus just 33 percent three years ago.
With half of the institutional investors having a net-ze...................... To view our full article Click here
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