Allocations

Intense competition, high valuations and regulatory uncertainty have led SWFs to shift from infrastructure to public equities – at least in developed markets, a new report finds.

The world’s largest pension pledges to keep building its alternatives portfolio – mostly made up of infrastructure at the moment – at a ‘stable pace’, as it eyes a 5% target.

The $1.5trn Japanese investor can now make direct investments into infrastructure, private equity and real estate funds.

The shift towards real assets is ‘here to stay’, according to survey, as infrastructure proves more popular than real estate with public pension funds and SWFs.

The $199bn retirement fund is looking globally to boost its infrastructure and real estate exposure to 10 percent, up from 4.06 percent currently.

Mark Fischer of Australia’s Qualitas says institutions are increasingly keen on ‘crossover investments’ spanning ag, real estate and infrastructure. Agri Investor examines the firm’s latest fund, currently in market with a A$204m target.

Anette Eberhard, who will oversee private equity at the alternatives manager of the Danish pension, talks about the team's expansion plans, new mandates and direct investments.

In its annual report, Abu Dhabi’s sovereign wealth fund says the outlook for infrastructure asset valuations will be less certain in 2018, given political factors and policy considerations.

As head of the group’s newly established infrastructure business, Grant Dooley is planning to build a five-strong core team in the short term and launch its maiden vehicle this year.

Japan Post Insurance will allocate 1.5 percent to alternatives within the next three years as it looks to build an infrastructure portfolio.