From Alternative to Mainstream

Chapter 1: Alternatives Ascending

From Alternative to Mainstream

Chapter 1: Alternatives Ascending

June 2021

 

Alternative investments were once a relatively small island in the investment industry, but investor demand for portfolio diversification and higher return potential are moving alternatives into the mainstream. Our new research study explores the role of mainstreaming in the current and future growth of alternatives.

Download Chapter 1 for our findings on institutional investors’ perceptions of alternative asset classes and strategies, and plans for allocations.

BNY Mellon, in conjunction with Mergermarket, surveyed 100 institutional investors and 100 alternative asset managers on their perceptions and expectations, and whether the two sides are aligned. 

 

Chapter 1 opens this report with a tour of alternative asset classes to explore how the pandemic’s upheaval has (or has not) influenced investors’ preferences within the world of alternatives. 

 

Later chapters will explore changing investor and asset manager priorities, attitudes and behaviors. The collective views of investors and managers culminate in our study’s conclusion, highlighting five outstanding themes critical to future of the industry: 

  • The scramble for scale or specialism
  • The case for customization 
  • Going and growing digital
  • The “retailization” of alternatives
  • The ESG imperative

“Investors will want more portfolio diversification over the coming months. Investing in alternative markets worldwide will help them achieve sustainable returns.”  

— Head of Finance, Thailand

  • By the Numbers
  • 59%
    expect venture/growth capital funds to provide the best returns over the next 12 months*
  • 40%
    expect real estate to be unattractive throughout 2021*
  • 58%
    are most interested in increasing allocations to hedge funds in North America*

* As identified by institutional investor survey respondents

Related


Securities Services for Alternative Asset Managers


 

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may be used to reference the corporation as a whole and/or its various subsidiaries generally. This material does not constitute a recommendation by BNY Mellon of any kind. This material and any products and services may be issued or provided under various brand names in various countries by duly authorised and regulated subsidiaries, affiliates, and joint ventures of BNY Mellon. Not all products and services are offered in all countries. The information herein is not intended to provide tax, legal, investment, accounting, financial or other professional advice on any matter, and should not be used or relied upon as such. The views expressed within this material are those of the contributors and not necessarily those of BNY Mellon. BNY Mellon has not independently verified the information contained in this material and makes no representation as to the accuracy, completeness, timeliness, merchantability or fitness for a specific purpose of the information provided in this material. BNY Mellon assumes no direct or consequential liability for any errors in or reliance upon this material.

 

This material may not be reproduced or disseminated in any form without the express prior written permission of BNY Mellon. BNY Mellon will not be responsible for updating any information contained within this material and opinions and information contained herein are subject to change without notice. Trademarks, service marks, logos and other intellectual property marks belong to their respective owners.

 

©2021 The Bank of New York Mellon Corporation. All rights reserved.

 

Corporate Address: 240 Greenwich Street, New York, NY 10286 

 

We take our data protection and privacy responsibilities seriously and our privacy notice explains how we collect, use and share personal information in the course of our business activities. It can be accessed at the privacy section of www.bnymellon.com. 

Ready to grow

your business?

Speak to our team.

Ready to grow your business? Speak to our team.