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BlackRock Survey: Institutional Investors Plan Push Into Real Estate, Real Assets

Major institutional investors around the world are poised to increase allocation to alternative investments, with a bias toward real estate and real assets during 2014, according to a survey of about 100 global institutional investors conducted by BlackRock ( BLK ).

Approximately half of institutions surveyed, 49%, expect to increase their real estate allocation and over 40% indicated they will increase their investment in real assets this year. At the same time, about one-third of the institutional investors surveyed intend to reduce cash holdings in 2014.

"Institutional investors are seeking to build portfolios better suited for an investment landscape characterized by low yields, sluggish growth, volatile markets, and rising correlation between stocks and bonds," said Robert Goldstein, head of BlackRock's Institutional Client Business and BlackRock Solutions. Price correlation between US equities and bonds, which had been negative from 2009 through mid-2013, has been positive ever since.

Investors also expressed a growing interest in infrastructure debt for high fixed yields. And, nearly 30% of institutions surveyed intend to increase their hedge fund allocations this year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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