Preqin: Institutional Investors To Up Alts. Allocations

May 23 2013 | 11:36am ET

Institutional investors remain bullish on alternatives, according to the latest data from Preqin, with most planning to maintain or increase their allocations to hedge funds, private equity, real estate and infrastructure in 2013.

Preqin's global survey of 70 institutional investors found the majority to be happy with its investments in each alternative asset class—particularly real estate investors, 93% of whom plan on maintaining or upping their allocations this year.

The 2013 Preqin Investor Network Global Alternatives Report found that among private equity investors, 59% will maintain their level of  exposure throughout 2013, with an additional 27% increasing their allocations to the asset class.

A third of investors in hedge funds plan to increase their exposure to the asset class, while a fifth plan on decreasing their allocations throughout 2013.

The survey said 50% of the institutional investors polled will actively seek investment opportunities through dedicated investment employees. Another 31% will adopt some mix of proactive and passive approaches to alternative portfolio building.

Two-thirds (67%) have two or more investment-focused employees dedicated to alternative assets.

“Although the benefits of investing in each alternative asset class vary, it is clear that most investors want to keep a notable allocation to alternative assets going forward, with many looking to increase their exposure,” said Preqin's Stuart Taylor in a statement. “Furthermore, many investors are becoming more sophisticated with how they access alternative assets, with most proactive in sourcing new investment opportunities. One of the main challenges that investors still face, however, is identifying the most appropriate funds that are in the market to make commitments to.”


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR