Global institutional investors prep for market risks, pursue active approach in 2018: BlackRock

SINGAPORE (Jan 18): Interest rates are declining, while valuations for risk assets are soaring. These are premises for large global investors to protect themselves against downturn risks through maintaining their cash levels and selectively increasing allocations to active strategies, according to a new survey conducted by BlackRock.

For the year ahead, about 65% of clients have plans to leave cash allocations unchanged, but the survey shows an interest in active management among institutional investors, which should play out across a diverse set of alternative asset classes, including illiquid assets and hedge funds, and also within public equities.

Based on the survey, illiquid or real assets remain the frontrunner within the private market universe for large global institutional investors and are expected to be the largest beneficiary of asset flows.

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