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“These conditions are testing investors’ ability to generate sufficient returns to meet their long-term liabilities” — Mark McCombe, Global Head of BlackRock’s Institutional Client Business
Rising geo-political risks and a deflationary Europe are headline concerns for institutional investors, now busy shifting portfolios into alternative asset classes, infrastructure and real estate in the hunt for yield, according to an investor survey by fund management firm BlackRock. Read more
Global institutional investors managing around $8 trillion will push more money into alternative assets and less conventional fixed income strategies as they focus on what they see as diverging monetary policies and expected growth in developed economies, a survey by BlackRock says.
Studying trends amongst the major institutions on a regional scale, BlackRock found the anticipated changes within the Asia-Pacific region largely mirror those on a global basis. The survey was carried out in November and December last year amongst BlackRock’s top 169 institutional investors. Read more
The number of German institutional investors with properties in North America in their portfolios has more than doubled compared with three years ago.
According to Feri EuroRating Services, a reallocation of real estate investments by German institutional investors has been taking place since 2012, with the USbecoming increasingly popular.
The share of investors with properties in North America has increased from 6% to 15.3%.
At the same time, the share of properties in Western Europe has dropped from 13.4% to 8.7%. Read more
Oil-exporting nations may raid their sovereign wealth funds to plug budget holes, but the funds’ asset allocation remains unchanged.
Tired of having its economy whipsawed by big swings in oil prices, Noway in 1996 opened a rainy-day fund to save oil earnings for future generations and cushion the government’s budget from volatility in crude prices. Today the Government Pension Fund Global, as it’s called, is the world’s largest sovereign wealth fund, with $870 billion in assets. Read more