Other essential characteristics must be emphasised:
Lastly, institutional investors are still under-invested. They are indeed well below their targets, and this is true for all asset classes, and especially for infrastructure. This under-investment can be explained in several ways:
But as regard investors, the trends remain intact. According to the most recent surveys (Preqin 2017), four real asset classes should be the subject of more ambitious investments in the coming years: private equity (48% of investors plan to allocate a larger portion of their portfolio in this asset class versus 6% who plan to reduce it), real estate (36% vs. 10%), infrastructure (53% vs. 11%), and finally - and especially - private debt (62% vs. 8%). The hedge fund asset class is the only one that seems to have been abandoned for the coming years (31% of investors expect divestments, while 15% plan to invest more).
Sacrificing some portfolio liquidity can be profitable. Ultra-low bond rates, equities that are highly volatile and thus sometimes seen as too expensive, the search for yield and the search to capture a liquidity premium are all pushing institutional investors toward the unlisted or «real asset» universe.
Philippe ITHURBIDE, Mickael BELLAICHE
Pedro Antonio ARIAS
Global Head of Real & Alternative Assets
The Greek crisis is over and the financial markets thought they could resume their search for yield in a low interest rate environment. However, the state of China's growth and concerns about the emerging markets have come in the way of this reconfiguration.
Global Head of Research