Alternative fund managers predict inflows into alternatives from pension funds to increase over next 18 months
New research* from Ocorian, a specialist provider of alternative fund services and global leader in entity administration, fiduciary and compliance solutions, shows almost nine in ten (87%) alternative fund managers predict inflows into alternatives from pension funds to increase over the next 18 months. Almost two-fifths (36%) of these expect a dramatic increase. This compares with just 9% who think levels will stay the same and 3% who predict a slight fall.
72% expect inflows into alternatives from private banks to increase over the next 18 months
Its study with alternative fund managers across the UK, US and Europe found almost three quarters (72%) expect inflows into alternatives from private banks to increase over the next 18 months, with 33% expecting these to increase dramatically. Around 20% think levels will stay the same and 6% predict a slight fall.
This is followed by six out of 10 (61%) who expect inflows into alternatives from corporates to increase over the next 18 months, with 34% expecting dramatic increases. Around a third (32%) predict levels will stay the same and 4% predict a slight fall.
Table showing how alternative fund managers see inflows into alternatives changing over the next 18 months
|Increase dramatically||Increase slightly||Stay the same||Fall slightly||Fall dramatically|
|Sovereign wealth funds||30%||27%||34%||5%||0%|
|Fund of funds||23%||33%||34%||8%||0%|
The research from Ocorian, which manages over 15,000 structures on behalf of 6,000+ clients globally, shows the rise in inflows comes at a time when alternative asset managers believe the levels of attractive investment opportunities are also on the up. More than nine in ten (93%) alternative asset managers see the levels of attractive investment opportunities increasing in the next three years, with 17% predicting a dramatic increase. Only 5% think levels will stay the same, and just 2% think levels will slightly fall.
Paul Spendiff, Head of Business Development, Global Funds at Ocorian, said: “Our research shows that alternative asset managers are feeling very optimistic about the next 18 months, with increasing levels of inflows across all sectors and in particular from pension funds, private banks and corporates who want to reap the benefits that alternatives can bring – helping to lower volatility, enhance returns and increase diversification. This revenue comes with ‘strings attached’ with investors requesting more bespoke reporting, transparency and detailed asset-level reporting. These requests are stretching the operational teams of even the largest alternative asset managers leading them to turn to firms such as Ocorian to support their investor reporting.”
About Ocorian Fund Services
Ocorian’s fund services team delivers operational excellence across fund administration, AIFM, depositary and accounting services to the world’s largest financial institutions along with dynamic start-up fund managers and boutique houses. It’s team of over 300 funds specialists work across all major asset classes of alternative investment funds such as private equity, real estate, infrastructure, debt and venture capital, whilst its specialist Islamic Finance team is a leading provider of Sharia-compliant investment structures.
* Ocorian commissioned independent research company PureProfile to interview 100 alternative fund managers across real estate, private debt, private equity and infrastructure, residing across the UK, US, France, Germany, Netherlands, Sweden, Switzerland, Finland and Norway during April 2023.