Changing attitudes towards investment types has resulted in a rise in the importance of alternative asset classes for investment and fund managers, according to an influential survey.
According to a survey conducted by Deutsche Asset & Wealth Management (AWM), investors are increasingly turning to alternatives as importance on absolute returns is gradually being replaced by liquidity needs.
“Alternative investments have come into their own, taking a core position in an increasing number of portfolios,” says Dario Schiraldi, head of global client group, Deutsche AWM.
“More than half of the Deutsche AWM clients whom we surveyed plan to increase their portfolio exposure to these asset classes.”
The survey finds that liquid alternatives, multi-strategy hedge funds and private equity secondaries may command larger flows, as investors increasingly focus on pre-and post-trade factors other than absolute return.
The expansion in the use of alternative asset classes comes as a result of investors demanding instruments that provide liquidity benefits.
Furthermore, the survey finds as firms recognize what alternatives investments can bring to diversifying their portfolio, “each could potentially earn its own allocation, as opposed to competing with each other for space.”
It concluded respondents from the Asia-Pacific region overwhelmingly said they are looking to alternative asset classes to improve diversification. Meanwhile respondents in the Americas and Europe said they use alternatives for a range of reasons from risk reduction to returns enhancement.
The survey received responses from 373 Deutsche AWM client including investment executives at banks, broker/dealers, wealth managers, pension and sovereign wealth funds.
Alternative Investments Grow In Importance For Managers, Finds Deutsche AWM
Changing attitudes towards investment types has resulted in a rise in the importance of alternative asset classes for investment and fund managers, according to an influential survey.