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Laxman Pai, Opalesque Asia: Roughly four in 10 institutional investors increasingly expand into private assets plan to increase their exposure to private equity, infrastructure, and private debt said a study.
According to the annual Global Institutional Investor Survey, in the next two years, 35% of respondents expect to increase allocations to private assets, as two-thirds of respondents believe the asset class will offer the best opportunities to get involved in key trends such as the energy transition or impact investing, in addition to being a deeper source of diversification.
The annual study, which spans 770 investors across 36 regions and US$34.7 trillion in assets, is a strong barometer of the investment appetite of investors across the globe.
Results show that, over the next 12 months, more than half of investors expect geopolitical uncertainty and rising inflation to have the greatest impact on portfolio performance.
"This is unsurprising with decarbonization, changing demographics, and deglobalization all having the potential to keep inflation high. Furthermore, these macro themes are also driving investors to change their portfolio allocations," the study revealed.
For example, in response to the growing deglobalization trend, over half of the respondents believe that investors will look towards investing in companies with more localized supply chains, with developed market equities (32%) and private equity (23%) believed to present the best opp...................... To view our full article Click here
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