\nin assets, found that illiquid
\nor real assets remain the frontrunner within the private market universe for large global institutional
\ninvestors and are expected to be the largest beneficiary of asset flows. Three fifths (60%) of
\ninstitutional investors globally are expecting to increase their allocations to Infrastructure and
\nRenewables.<\/p>\n
\u201cClients\u2019 intention to reallocate to private markets and other highly active strategies is a recognition Hedge funds set for inflows, active equities in favour<\/strong><\/p>\n Hedge funds appear to be back in favour with investors, who have shifted from an intended Despite an anticipated overall decrease in equity allocations, almost one quarter of institutions Alternative credit set to capture fresh capital<\/strong><\/p>\n Globally the hunt for yield means alternative forms of credit such as private credit remain attractive, Edwin Conway adds: \u201cIn the current environment of record-high asset performance, we believe Rebalancing survey data<\/strong>Real Estate is similarly set to gain, with more than two fifths (42%) of institutions increasing
\nallocations to the asset class. Over two fifths of institutions (43%) are looking to increase private
\nequity allocations globally.<\/quote><\/p>\n
\nthat global risks persist and of the value of portfolio managers\u2019 skill. Despite synchronized global
\ngrowth, our overall return expectations for most segments of institutional investors are well below
\ntheir return targets\u201d<\/em>, commented Edwin Conway, Global Head of BlackRock\u2019s Institutional Client
\nBusiness. \u201cMaintaining current cash levels and increasing allocations to active managers may
\nseem counterintuitive. But for many of our clients, it\u2019s their two-pronged strategy for navigating risk
\nand potentially volatile markets.\u201d<\/em> <\/p>\n
\ndecrease in 2017 to an anticipated increase in 2018. One fifth of those surveyed (20%) plan to
\nincrease their allocations to hedge funds.<\/p>\n
\n(24%) expect to shift allocations to active relative to index investments, versus 16% that plan to
\ndo the opposite.<\/p>\n
\nwith over half of respondents (58%) looking to increase allocations.
\nWithin credit more broadly, emerging markets also find favour, with almost two fifths (37%) looking
\nto increase allocations here. Overall a decrease is expected in core and core plus allocations
\n(28%), a consistent trend in the survey\u2019s year-over-year results.<\/p>\n
\nthat active portfolio decisions need to be taken by institutional investors this year. For several
\nyears, we have been talking to clients about the need to embrace alternative strategies as a way
\nto add diverse sources of return, and offset the current rate environment. It\u2019s gratifying to see them
\ncontinuing to embrace these assets as they slowly become the norm for institutional investors
\nseeking differentiated sources of return, inflation hedging and counter-cyclical investments.\u201d<\/em><\/p>\n
\n![\"rebalancing_survey_data.jpg\"](\"http:\/\/www.next-finance.net\/http:\/\/beta.next-finance.net\/wp-content\/uploads\/2018\/01\/rebalancing_survey_data.jpg\")
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