Alternatives managers expect Trump boost to asset class

Donald Trump’s victory in the US presidential election will have a positive impact on alternative assets, say many product providers.

According to a poll of 182 alternative asset managers, over half thought that a Trump presidency will have a positive effect on their asset class in the US. Just 12% thought it would be negative.

However, a quarter thought that Trump’s policies may have a negative impact on alternative assets outside of the US, with 22% expecting a beneficial effect.

The policies that fund managers think will be most helpful include Trump’s pledge to slash US corporation tax, and his proposed infrastructure spending. Seventy-three per cent and 62% of managers, respectively, cited these policies in the Preqin poll.

Around a third of private capital managers expected the short-term effect to be positive for their US-based holdings but 21% believe it will be negative for their other assets.

Preqin found that for the most part, managers cited uncertainty over the effects of Trump’s policy proposals as a key consideration.

Some managers felt that the potential impacts on debt rates and securing investor capital might be negative, while others felt that market volatility might serve to benefit alternative assets as it reduces correlation to traditional asset classes. 

©2016 funds europe

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