Alternative assets outperform major indices

Alternative assets have had a greater internal rate of return (IRR) over one, three, five and ten years than major indices including the S&P 500, MSCI Europe and MSCI Emerging Markets. Information provider Preqin groups these classes under ‘private capital’ and includes private equity, private debt, real estate, infrastructure and natural resources. The Preqin Index, which is a measure of returns on capital invested, show that private capital funds reached 322 index points by the end of 2015, from a starting point of 100 at the end of 2000. This is far ahead of the S&P 500 at 208 points, which according to Preqin illustrates the greater returns potential of private equity portfolios. Distressed private equity, including distressed debt, turnaround and mezzanine funds was the best performing strategy, reaching 494 points. According to the firm, private equity firms hold the majority of assets, at $2.7 trillion (€2.4 trillion), followed by private real estate at $809 million, natural resources at $404 billion and infrastructure with $331 billion. ©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.