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.)