|
Laxman Pai, Opalesque Asia: The vast majority (86%) of global asset owners/institutional investors invest in private markets, while 68% invest in hedge funds, absolute return investments and other diversifiers, a study revealed.
Based on a survey of 180 global asset owners, with investment portfolios ranging from US$1 billion to over US$500 billion, the findings highlight a growing focus on alternative investments, operational efficiency, liquidity and risk management and the increasing role of technology and data in decision-making.
The survey titled "Asset Owners in Focus: Global Asset Owner Peer Study 2025," revealed that while asset owners on average continue to favor equities (42%) and fixed income (27%) in their portfolios, alternative investment allocations continue to increase, with private market assets making up 13% of the average portfolio and 86% of portfolios having some investment in private assets.
Liquidity management has also taken on greater focus with 60% of asset owners noting that liquidity has become more important and cash allocations averaging 11% of portfolios globally.
According to the report, private debt is now a mainstay in many institutional portfolios, with commercial real estate, private credit and direct lending, and residential real estate the most popular sectors.
Cryptocurrencies and other digital assets are invested in by 21% of those that allocate to private markets, the Northern Trust study said.
Meanwhile, asset ...................... To view our full article Click here
|
RSS
