Fund managers have increased allocation to alternative investments since the Covid pandemic and say the strong performance of these assets during this period has led to a more more positive view of this asset class.
A recent survey of professional investors – which includes institutional fund managers and wealth managers – found that almost nine out of 10 (88 per cent) professional investors now had a more favourable view of alternatives due to these returns delivered through the pandemic.
More than two thirds of those surveyed (68 per cent) said the funds they manage have increased their allocation to alternatives during the past 12 months. Of these, 11 per cent say they their allocation to alternatives has increased dramatically.
The research said this trend looks set to stay. Almost two thirds (63 per cent) of professional investors see their allocation to alternatives increasing in the next 12 months with 16 per cent of these saying they plan to dramatically increase their allocation.
The research from Managing Partners Group (MPG), found that nearly a quarter (23 per cent) said their attitude towards alternatives has become much more positive, while 65 per cent say it has become slightly more positive.
The study was conducted among institutional investors across the UK, Germany, Switzerland and Italy who are responsible for £276 billion assets under management.