Up to 70% of global public sector investors plan to increase their infrastructure investments over the next year or two, according to a survey commissioned by US bank BNY Mellon.
The findings, reported in “Real Momentum: Global Public Investors and the Real Assets Market”, covered sovereign and public pension funds with combined assets under management exceeding US$4.6 trillion (€4 trillion).
The planned increase in infrastructure is the highest figure for all asset classes but from a relatively low base, the survey found.
Real estate is the next most popular asset class, with 32% of respondents planning to increase their allocation over the next 12 to 24 months.
Hani Kablawi, chief executive of Global Asset Servicing and Emea chairman for BNY Mellon, said: “The appeal of real assets to public investors stem from their low correlation to stocks and other investments, combined with yields that have exceeded most traditional assets over five, 10- and 20-year horizons.
“Central bank policies, demographic shifts – the growth of the middle class, the impact of millennials and urbanisation – and the outperformance of real assets have created a surge of interest and investment.”
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