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

EXECUTIVE INTERVIEW: This is the year

Feb 16, 2017

Mark Weeks, head of ETF Securities, reflects on Brexit’s trampling of the FTSE and tells Nick Fitzpatrick he hopes to see stock and bond inflows top commodities for the first time this year.

EXECUTIVE INTERVIEW: A natural interest in the topic

Feb 16, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.