Alternative investments dominating mandates

MotorwayAbout a third of investors are carrying out manager searches for alternative investment mandates, research among consultants indicates.

Data provider eVestment said about 32.5% of investors were looking for alternatives, particularly private equity and infrastructure, in the last quarter of 2015.

These searches were for new mandates. The next largest asset class search – domestic equity – ranked at 21.3% of investors, with around two-thirds of these for replacement managers.

The firm’s ‘Asset Allocation and Consultation Survey’ drew responses from consultants with combined assets under advisory of $8.1 trillion (€7.4 trillion).

Market volatility, low returns and their clients’ ability to meet return requirements are the drivers for alternatives.

High manager turnover is predicted for high yield strategies, while lower turnover is expect for structured credit and distressed debt.

©2016 funds europe