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Laxman Pai, Opalesque Asia: Compared with recent years, interest in alternatives has surged: in 2020 and 2021, about 25% to 35% of global institutional investors said they planned to increase allocations to the major categories of alternative asset classes. In 2022, the numbers grew to the 43% to 58% range, said a study.
According to Nuveen's EQuilibrium Global Institutional Investor Survey, infrastructure was the most commonly picked asset for investors who plan to increase their alternative allocations (chosen by 58% of investors). Investors indicated that they are using infrastructure for a host of solutions.
Private infrastructure was the most often selected for inflation-risk mitigation and infrastructure debt was the top choice for allocations to alternative credit. In addition, infrastructure was picked most often as the asset class investors are prioritizing for their climate risk strategy.
"Investors are turning to infrastructure to help protect portfolios from inflation among other critical needs, such as increasing yield and mitigating climate risk," said Mike Perry, Head of Nuveen's Global Client Group. "Infrastructure's ability to play multiple roles is a key driver of increased allocations."
When it comes to their portfolio strategies, a majority of investors are either "actively rethinking" (31%) or "redefining and reallocating" (27%) their portfolios. Nearly half (48%) are reformulating how they calculate capital market assumpt...................... To view our full article Click here
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