Investor allocations to real estate and life settlements expected to increase dramatically

Written by Adam Cadle

03/08/2023

Real estate and life settlements are the alternative asset classes set to benefit the most as professional investors review allocations, according to new research from Managing Partners Group (MPG).

MPG’s research with institutional investors and wealth managers who are collectively responsible for £258bn AuM showed nearly half (47%) across Switzerland, Germany, Italy, the UK and the US expect allocations to real estate to increase dramatically over the next three years while 45% believe allocations to life settlements will see major growth.

Hedge funds are also expected to see dramatic increases in allocations with 44% of professional investors forecasting major shifts in allocations.

The research found less support for commodities and high-yield bonds. Around a third (33%) predict dramatic increases in allocations to commodities while 28% believe high-yield bonds will see dramatic growth in allocations.

Jeremy Leach, CEO of Managing Partners Group, commented: “The alternatives sector is growing rapidly with assets under management expected to expand to $23.2trn by 2026 amid increased interest from retail investors and HNW individuals. That is driving increased allocations to separate asset classes with real estate, life settlements and hedge funds set to be the biggest winners over the next three years.”

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