Apex-Equities.com Global Survey of Institutional Investors

Institutions Are Poised to Increase Real Estate and Real Asset Allocations

 

Hong Kong, China -- (SBWIRE) -- 09/30/2015 -- Institutions Will Move out of Cash, Growing Role for Hedge Funds and Private Equity

Major institutional investors around the world are poised to increase their allocations to alternative investments, with a bias towards real estate and real assets according to a global survey of institutions conducted by Apex Equities.

Approximately half of institutions surveyed – 49 percent – expect to increase their real estate allocation and over 40 percent indicated they will increase their investment in real assets this year. At the same time, about one-third of the institutional investors surveyed intend to reduce their cash holdings.

"Institutional investors are seeking to build portfolios better suited for an investment landscape characterized by low yields, sluggish growth, volatile markets, and rising correlation between stocks and bonds," said Robert Choi, Senior Managing Director and head of Apex Equities' Institutional Client Business and Apex Equities Solutions.

"Divergent economic and geopolitical conditions globally offer institutions a menu of real estate and real asset opportunities that meet a variety of investment objectives," said Choi.

"In real estate, while core, income producing investments in developed markets are still in favor because of their liquidity and safe cash flows, we anticipate that institutions looking for income-producing alternatives will turn their attention to more opportunistic real estate investments outside their home markets," said Choi.

"We're also seeing a growing interest in infrastructure debt. These types of investments can potentially offer institutions high fixed yields, with stable cash flows and long duration."

"The results of the survey likely reflect a recognition that, going forward, the portfolio diversification benefit traditionally offered by equities and bonds might be less powerful than in the past," Goldstein said.

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