Institutional investors

Global Alternative Investing Survey results report Allocation to alternatives expected to increase by over a third, from 14% to 19%, by 2012 Evaluation and re-commitment: The next phase for alternatives According to the latest Russell Investments' 2010 Global Survey on Alternative Investing, institutional investors are sticking with alternatives and are, in fact, expecting to increase their allocations to alternatives from 14% to 19% over the next two to three years. "As we decrease the proportion of return-seeking assets, we certainly are not looking to decrease alternatives. It's the equities that are taking the hit." –Interview Comment 2010 Global Alternative Investing Survey overview videos select a tab below to watch video KEY FINDINGS ASSET-CLASS-SPECIFIC TRENDS KEY INSIGHTS Watch Julia Cormier & Janine Baldridge provide an overview of the key findings from the survey Watch Julia Cormier & Vic Leverett provide an overview of the asset class specific trends reported in the survey Watch Janine Baldridge & Vic Leverett provide key insights on what different types of investors can take from the survey results Allocation % among alternative types vs. expectations The survey finds real estate, private equity and hedge funds remain the preferred alternative types, but there's increased interest in commodities and infrastructure as value sources given inflation concerns. And while institutional investors like alternatives, there is also a rising tide of risk-consciousness among the survey respondents. Most of them are emphasizing an increased need for transparency and are demanding greater accountability from their alternative investments providers. The Russell Investments' 2010 Global Survey on Alternative Investing captures – in quantitative data and qualitative interviews – the experiences of individuals who are "on the front lines" of institutional investment decisions. It also documents the evolving changes in philosophies, policies, allocations and attitudes among diverse global institutions that participate in alternatives. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. In general, alternative investments involve a high degree of risk, including potential loss of principal; can be highly illiquid and can charge higher fees than other investments. Hedge strategies and private equity investments are not subject to the same regulatory requirements as registered investment products. Hedge strategies often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. USI-7039-06-12			Access the report Have a ClientLINK account? Click here to access the report. Download the full report Printer friendly version of this page