German institutional investors seek alternatives

Survey1Alternative investments are becoming more attractive to German institutional investors, with a third planning to invest more in real estate and infrastructure.

Frankfurt-based Universal Investment, which surveyed 90 institutional investors with a combined €300 billion of assets under management, says low interests are increasingly impacting strategic asset allocation of pension funds, insurance companies and banks.

Two out of three German institutional investors have less than 3% allocated to alternative investments, but almost 70% plan to increase this, and 30% by more than three percentage points.

Some 29% plan to increase their allocation to private equity and loans. When Universal Investment carried out the same survey a year earlier, only a fifth planned to do so.

German institutional investors are avoiding sovereign bonds and a fifth of those surveyed plan to increase their allocation to equities.

Universal Investment is responsible for the administration, insourcing and risk management of €170 billion of assets of German Publikums and Spezialfonds.

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