Industry Voice: Is there a new market context to the case for private assets?
Institutional investors are reconsidering traditional beta sources for risk allocation after the market setbacks of 2022, which left them less confident in the effectiveness of a simple equity/bond mix for diversification. This has led to an increased focus on alternative return streams. However, as the world of alternative strategies evolves, investors must understand these changes before considering an enhanced allocation to alternatives. One trend is the erosion of profitability for longer-term strategies due to advances in computing power, analytical speed, and automated trading, which is ...
Source: professionalpensions.com