Stockholm (HedgeNordic) – Real estate and infrastructure investments have come to the forefront of institutional investors allocations in recent years. With traditional low risk alternatives yielding close to zero, the relatively stable returns and low risk profiles of these investments have had instititutions, in the Nordics and elsewhere, focusing more on these asset classes.
Today, real estate allocations in pension fund portfolios are estimated to be between 5-15% of total assets allocated, this number is likely to increase further as most pension funds have a target allocation of closer to 20%, according to a recent Prequin study.
The Nordic allocators and asset managers we talk to confirm that interest is on the rise and that institutions are increasingly looking to real estate and infrastructure as a means to diversify their portfolios.
In an effort to cover the activity in the Nordics, HedgeNordic has put together a first report covering real estate and infrastructure. By compiling thoughts and views of fund managers and allocators alike, we look to shed some light on these asset classes as an alternative source of return, what trends that are currently driving allocations and what the future for these investments have to offer.
To read the full report, please click here: Special Report: Real Estate & Infrastructure
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