Sovereign Wealth Funds Eye Alternatives

Sovereign investors will allocate more funds to alternatives in 2014, according to a new study from Invesco, consistent with their 2013 findings.

In 2013 the “Invesco Global Sovereign Asset Management Study” revealed that government investors were seeing diversification due to volatility in equity markets and yield compression in the bond market, as well as a high correlation between bonds and stocks.

The demand for alternatives

This year the study found similar demand for alternatives, with 51 percent saying they would increase new exposure to real estate relative to the portfolio and 29 percent increasing new exposure to private equity. All of the major alternative...