More than three-quarters (78 percent) of institutional investors and wealth managers will increase allocations to illiquid assets during the next five years, with 10 percent making dramatic increases, new research from international asset management company Managing Partners Group (MPG) reveals.
Its survey of global institutional investors and wealth managers holding assets of €107 billion ($115 billion) under management, finds that 10 percent of respondents will cut allocations to illiquid assets in the next five years. Just 11 percent of those surveyed will keep allocations the same.
Current allocations to illiquid assets for those investors surveyed were typically between 11 percent and 25 percent, with 60 percent of respondents falling into this range. Around one in six (16 percent) say they invest between 25 percent and 50 percent of their portfolios in illiquid assets, while just under a quarter (24 percent) of investors have up to 10 percent dedicated to illiq