Alternative managers predict 50% asset growth in next five years

Real estate soldInstitutional appetite for real assets has climbed strongly over the last year and is expected to grow over the next five years, research among alternative investment managers suggests. Macro-economic, social and environmental shifts globally are said to be fuelling a need for investments in assets such as property and infrastructure worldwide, according to the BNY Mellon/Preqin report that surveyed 340 asset managers. Overall, 60% of infrastructure managers, 44% of real estate managers and 39% of private equity managers surveyed expect their assets under management to grow by at least 50% in the next five years. A third of real estate and 41% of infrastructure managers see the greatest demand coming from public pension funds, followed by private sector pension funds. A quarter of private equity managers surveyed see interest coming from public pension funds. The report, called ‘Building for the future’, gained views from 340 private equity, real estate and infrastructure fund managers globally. “Investors are turning more and more to real assets to find yield, diversify their portfolios, and steer through volatile markets,” said Alan Flanagan, global head of private equity and real estate at BNY Mellon. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.