European institutions are to shift more money into private equity and hedge funds, according to a report released by Connecticut-based financial research firm Greenwich Associates.The report said many European investors expected to increase their investment in alternatives, citing private equity, property and hedge funds. However, allocations to these did not increase between 2004 and 2005, showing this eagerness has not yet been met with action.
Greenwich consultant Tobias Miarka said: “Although allocations haven’t budged, European institutions remain bullish on alternatives – at least in theory. In private equity and hedge funds, 41% of continental Europe’s institutions expect their allocations to increase by 2009, while only 1% expect them to decline.” The consultancy believes this feeling is part of a change from the more traditional industry practices of the past 50 years.
The report also claims the diversification in investment portfolios is contributing to a European hiring boom in external managers.
Topics: Greenwich Associates
More on Structured Products
Lower deposit rates will force investors to take more risk
Software from Calastone seeks to bring structured products into the digital age
Regulation and low interest rates pose greatest challenge
Tim Mortimer on the value of put options in structuring
Sign up for Risk.net email alerts
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.