A majority of institutional investors in Asia Pacific plan to increase their allocations to both infrastructure and private assets in order to cope with profound market changes.
This is the finding of the third annual Equilibrium Global Institutional Survey run by asset manager Nuveen.
According to the study, 61% of Apac-based asset owners picked infrastructure assets as part of their increased allocation to alternatives.
In addition, 90% of Apac insurers stated that they plan to increase their allocation to private markets.
The change in strategy has been prompted by profound market changes. As the survey found, a majority of Apac asset owners (67%) stated that the current environment is “like nothing they’ve ever witnessed”.
The research also found that most Apac asset owners are considering climate risk in their investment decisions – more than three-quarters (78%) of investors in the region consider the impact on the environment and society when making investment decisions.
According to Mike Perry, head of Nuveen’s global client group, the survey shows that investors are reassessing their view on risk and return in order to prepare for a new market regime.
“Institutional investors typically take a measured, incremental approach to portfolio changes,” said Perry. “That makes the degree to which investors today are contemplating or making very significant changes even more striking.”
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