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Laxman Pai, Opalesque Asia: Among the 169 foundations and endowments with between $10 million and $250 million in assets that were surveyed, 116 said they expected to make some kind of change to their asset allocations, according to a survey.
The majority of organizations are looking to increase their allocations to alternatives, according to a survey from investment consultant CAPTRUST Financial Advisors. 82% expect to increase their allocations to alternatives, it said.
Investors cite several reasons for allocating to alternative investments, but the two most common-diversification benefits (73 percent) and the hope of increasing portfolio performance (64 percent)-far exceed all other reasons.
For organizations not allocating to alternative investments, the most cited reasons-liquidity concerns (42 percent) and cost (18 percent)-reflect the nature of the asset class. Other barriers, such as complexity (36 percent), administrative burden (18 percent), and lack of consideration (16 percent), may be addressed through additional support.
Organizations may also want to consider seeking professional education and operational assistance in alternative investments as a surprisingly low portion (10 percent) of those not investing in alternatives feel the asset class offers no potential benefit.
The survey found that alternative investments continue to be an untapped opportunity, with 39 percent of organizations not currently allocating to this asset class. Surpris...................... To view our full article Click here
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