Since 2008 nearly one-third of European charities have restructured their investment portfolios to increase their exposure to alternative products, according to a survey by Cerulli Associates.
The latest issue of The Cerulli Edge-Global Edition includes the results of a survey of major European charities which, together, hold a total of GBP64.2 billion (USD109.3 billion) in assets.
"The conclusion must be that for asset managers with a proven track record in alternatives-be it hedge funds, infrastructure fund managers, private equity groups, or an institution that can act as a broker for direct investments-there are some terrific opportunities within the sector," says Barbara Wall, Europe research director at Cerulli Associates. "Because alternatives often have lower correlations with traditional equity and fixed income, a growing number of charities are beginning to rely on them."
"Our survey reveals that almost two-thirds of charities use 10 or more asset managers at any one time," says Cerulli senior analyst Angelos Gousios. "And for any asset manager who can persuade a charity to start thinking outside the box, the current situation should be worth exploring."
