Big investors, faced with the prospects of low bond yields, are trying to invigorate returns by turning to “real” assets. According to a new BlackRock Inc. survey published Tuesday large investors are now expressing a growing desire to snap up real assets – everything from office buildings to bridges to farmland. BlackRock surveyed 169 global clients which manage $8 trillion in assets. About 40% of the polled investors were in North America, followed by 29% in Europe and 20% in Asia-Pacific. Mixed economic forecasts and shifting monetary policies are also additional challenges. European investors showed the most desire to move into real assets and real estate.
Excerpts from the Article:
Big investors, faced with the prospects of low bond yields, are trying to invigorate returns by turning to “real” assets.
In contrast with a conventional mix of stocks and bonds, large investors are now expressing a growing desire to snap up real assets—everything from office buildings to bridges to farmland, according to a new BlackRock Inc. survey published Tuesday.
The real assets are cyclical, generally more illiquid and do carry more risk than safer bonds and stocks.
Citation and link:
Martin, Timothy W. “Big Investors Looking to Get Real (Assets).” WSJ News., 17 Feb. 2015 Web. 27 Feb. 2015.
http://blogs.wsj.com/moneybeat/2015/02/17/big-investors-looking-to-get-real-assets/