The quest for returns in a low-yield global environment has pushed more investors across Asia and globally into new territory. BNY Mellon’s recent report, The Race for Assets: Alternative Investments Surge Ahead, in association with FT Remark, surveyed 450 institutional investors and investment managers about their alternative asset allocations. More than half (53%) of respondents expect allocations to alternatives to increase in the next 12 months. The report also found that investment in alternative assets has reached a record high US$7.7 trillion and shows no signs of slowing. Not surprisingly, one of the main drivers for this is performance.
At the same time, in exploring alternative assets, many investors are sticking to traditional approaches, and contending with a lack of experience and expertise. Asset servicing is also in some ways still catching up to the changing demands created by the rush to alternatives.