Adding return and lowering risk with private assets

Duncan Lamont, Head of Research and Analytics, discusses the potential benefits of investing in private assets.

19/10/2018
Construction-in-Dubai

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

Private assets have been popular with endowments and official institutions, such as sovereign wealth funds and government pension plans, for some time.

However, many  of these investors are looking to expand into new areas and other institutional investors are increasingly drawn to this space, attracted by the potentially for higher returns, lower risk and diversification benefits.

Our survey of 650 global institutional investors found that average allocations to private assets are expected to increase above 13% in 2018, with growth across all major investor types and regions.

As well as the strategic attractions of private assets, our paper on “Adding return and lowering risk with private assets” also addresses current market conditions.

Our in-depth research covers the main categories of private equity and debt, real estate equity and debt, and infrastructure equity and debt, contrasting their characteristics with traditional equity and bond investments.

As well as the return side we also deal with the thorny issue of risk and whether traditional concepts like volatility really have much meaning when it comes to private assets. Our hope is that this paper should serve as a useful companion for both novice and more experienced investors.

Read the full report: Adding return and lowering risk with private assets

Read the summary: Adding return and lowering risk with private assets

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Duncan Lamont, CFA
Head of Strategic Research, Schroders

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.