ONGOING: Global Institutional Investors Prefer Private Market Alternatives vs. Public Alts

Posted on 03/12/2021


SWFI Releases Global Asset Owner Survey for March 2021

Seattle, Washington, March 12, 2021: SWFI has released its 15th consecutive survey on global asset owners. The asset owner survey is an important measure of global asset owner sentiment and tracks quarterly medium and long-term changes of the views held by these investors. The findings are released on a limited basis to institutional investors that participate as well as news organizations and subscribers to SWFI data services. The survey sample includes sovereign wealth funds, pensions, superannuation funds, and other institutional investors.

The sample group of investors is estimated at US$ 2.348 trillion.

In a time-series of 15 quarterly surveys, it is clear that sovereign wealth funds and public pensions desire to overweight private equity and private infrastructure over listed infrastructure and public REITs.

“Some sovereign wealth funds and pensions find solace in private markets, as central banks expand their balance sheets to unseen levels in human history,” comments Michael Maduell, Chairman of SWFI.

Sovereign funds and large pensions continue to work with fund managers to support private market vehicles in real estate, structured credit, lending, and private equity.

A key shift from the previous quarter is that fewer respondents saw geopolitical risk as the greatest risk toward financial market stability. Regarding the same question, the interest rate increase risk choice went up. The pandemic option remained the most selected choice for being the greatest risk toward financial market stability. The emergence of COVID-19 variants and vaccine delays could slow the economic reopening in various parts of the world.

Like last quarter, U.S. fixed income remains a key underweight, while the asset owner respondents continue to want to overweight private equity, private infrastructure, and credit strategies. Fixed income investors may underweight bonds and maintain short duration in a possible rising rate environment.

Subscribers can access the survey at (SWFI Global Asset Owner Terminal) under the Reports tab (then Survey tab).

Believes Earnings Expectations for Listed Companies will Rise by More than 10% in the Next 12 Months

Period Percent Yes
Mar 2021 59.3%
Dec 2020 47.6%
Sep 2020 41%
Jun 2020 28.20%
Mar 2020 9.40%
Dec 2019 17.10%
Sep 2019 7.10%
Jun 2019 18.80%
Mar 2019 21.10%
Dec 2018 21.10%
Sep 2018 38.90%
Jun 2018 50.00%
Mar 2018 44.00%
Dec 2017 30.80%
Sep 2017 31.60%

*Percentages are rounded.

About SWFI
Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund, and central bank events around the world. SWFI is a minority-owned organization.

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