Schroders Private Assets Media Summit 2021: Schroders targets private assets megatrends to meet growing client demand
Schroders has identified the key megatrends driving the growth of private assets as it focuses on meeting rising investor demand, journalists at Schroders Private Assets Media Summit heard.
In four years, through a mixture of organic growth and specialist acquisitions, assets under management for Schroders Private Assets business have more than doubled to stand at almost $66 billion as of the end of March 2021.
The shift towards sustainability and impact, the pressure to move from allocator to operator strategies, the increasing democratisation of private markets, alongside institutional investors’ growing pressure to access income alternatives and the need to offer solutions to clients as they concentrate their provider relationships, are among the key themes driving this space.
Schroders’ recent Institutional Investor Study 2020* indicated that investors plan to ramp up their allocations to private assets from 12.8% to 14.1% over the next 12 months, with 46% stating that an increase in their allocations to private assets would help improve risk and return objectives.
Georg Wunderlin, Global Head of Schroders Capital, commented:
“Private markets are at an inflection point, reaching ever broader audiences and becoming ever more diverse. This expansion will lead to growing demand for specialised investment strategies rooted in deep skills to identify, improve, build or change investment assets.
“Furthermore, the rising diversity of strategies and the need to manage costs will lead to increased investor demand for solutions which deliver targeted investment outcomes. With a view on outcomes beyond financial returns, investors will be pushing for sustainability and positive impact on social or environmental issues.
“Meanwhile, the continued zero rate environment will propel demand for private assets overall, and specifically for income alternatives amongst institutional investors.”
Schroders Capital provides access to investment opportunities managed by teams with a long and consistent track record of robust investment performance.
* About Schroders Institutional Investor Study:
This global study was commissioned by Schroders for the fourth consecutive year to analyse institutional investors and their attitudes towards investment objectives, performance outlook and risks to their portfolio. The respondent pool represents a spectrum of institutions, including pension funds, insurance companies, sovereign wealth funds, endowments and foundations managing approximately $25.9 trillion in assets. The research was carried out via an extensive global survey during April 2020. The 650 institutional respondents were split as follows: 179 in North America, 248 in EMEA, 173 in Asia Pacific and 50 in Latin America. Respondents were sourced from 26 different countries.