Many institutional investors think investing in alternatives is “essential” for diversifying portfolio risk, a survey found.
The Natixis Investment Managers survey found 70% of investors had this view and that 57% said investing in alternatives was necessary to outperform the broader market.
The top choices for providing a source of stable income as interest rates rise and the 30-year bond bull market ends include infrastructure (55%) and private debt (47%).
Almost three-quarters of respondents said the potential returns of illiquid investments were worth the risk.
Just under 60% said they found alpha in environmental, social and governance investing.
Natixis surveyed 500 institutions.
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