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Laxman Pai, Opalesque Asia: Almost three-quarters (73 percent) of global institutional investors expect Private Markets investments to outperform Public Markets over the next five years, revealed a study.
Aviva Investors' latest Private Markets Study found that more than half (51%) of the 500 institutions surveyed expected to increase their allocation to private markets over the next two years.
The annual research captures responses from 500 institutional investors in Europe, North America, and Asia, which together represent combined assets of US$4.3 trillion.
Whilst 'Diversification' was highlighted by most respondents (70 percent) as their main reason for allocating to Private Markets today, the ability of these assets to provide an illiquidity premium is expected to become an increasingly important characteristic.
47 percent of investors expressed this as being a key reason for allocating to Private Markets assets in the next two years versus 40 percent today.
Of the three regions surveyed, European investors were most likely to be considering an increased allocation to Private Markets assets (57 percent), compared to 47 percent in North America and 44 percent in Asia-Pacific.
Globally, Private Markets assets now account for 11.5 percent of institutional investor portfolios, up from 10.5 percent last year. Whilst allocations to Private Markets in North America were almost unchanged, the region remains the biggest investor in Private Markets globall...................... To view our full article Click here
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