Aberdeen: Appetite for alternatives grows
Alternative assets play a growing role in investor’s portfolios according to the latest research conducted by Aberdeen Asset Management.
The report, based on a survey among 100 senior investment professionals and 16 interviews, revealed that some 82% of defined benefit pension schemes currently have exposure to property, 53% to hedge funds, 47% to private equity and 46 to infrastructure.
The report also highlighted that exposure to alternatives is set to increase, among the defined contribution schemes without alternatives in their portfolio, 31% expect to introduce infrastructure within the next two or three years, 18% property, 15% private equity and 12% hedge funds.
McCaffery, global head of alternatives at Aberdeen commented: “This research provides empirical evidence to support what we see every day speaking to clients: alternative strategies and assets are playing an increasingly important role in investment portfolios. In a persistently low-yield environment, all investors are having to cast their nets far and wide in search of returns.
A majority of 74% of defined benefit schemes said that investment advisors where key in developing alternative strategies, while 39% of respondents highlighted the need for further transparency and information.