Big investors put a stake on real estate
Large-scale investors want to invest cash reserves in infrastructure
Vienna. Institutional investors want
to lower their cash share this year. They also want to reduce their equity and
bond quotas and instead rely on real estate and on off-exchange participation
in companies (private equity), as the survey among 240 institutional clients shows.
BlackRock, who is one of the world’s largest asset managers, made the survey.
Money flows in indictments
According to the survey, 13% want to
build up additional cash positions and 25% want to invest their bonuses. But
this money is likely to come in illiquid (and thus not so easily settable)
forms of investment as bonds: 28% of respondents want to raise their bond
holdings and 34% want to lower them. In the case of equities, 23% of investors
want to increase quotas, while 29% want to deduct their equities.
Big investors put a stake on real estate
The respective quotas are 47% higher
and only 9% lower. Further data: 48% want to increase their exposure to private
equity and 13% want to reduce them. 61% of stockpiles are facing 4%, who want
to withdraw funds from infrastructure projects, raw materials, agriculture and
forestry.
Insurers need stable cash flows
This is the reason for the change,
according to Edwin Conway, head of global business with institutional customers
at BlackRock. Long-term leased real estate and infrastructure provide such
stable and calculable cash flows.
Source: The Press (Monday,
February 13, 2017.)
