MFA Blog

Sovereign Investors Look to Increase Alternative Investments

Posted on June 26, 2014

A recent survey noted that sovereign wealth investors will allocate “more of their funds to alternative assets to meet long-term investment return targets,” Bloomberg Businessweek reported.  In all, survey respondents said they expect to increase their allocations to hedge funds by 20% in 2014 versus 2013.  Actual allocations to hedge funds in 2013 rose by 4% from 2012.

“We are in a low-inflation environment generally, and what we are seeing is a search for yield,” Nick Tolchard, Invesco’s managing director of international development and sovereign investors told Businessweek.

The survey included 52 investors, including sovereign wealth funds and pension funds.  The respondents noted also that they largely plan to increase allocations in Latin America and Africa.

Read the full survey online here, and read more about the study from Bloomberg Businessweek.