Increasing appreciation for investments in tangible assets, as outlined in a recent report
The latest report titled "2025 Real Assets" by Phenix Capital sheds light on the current landscape of global real asset investments. The survey, which did not specify the exact number of institutions that were surveyed, reveals several key findings.
Approximately 72% of the funds are focused on developed markets, with Europe and North America being the most popular locations. The remaining 28% are global real asset funds. The survey did not provide information on the geographical distribution of the investors or the real assets funds they are invested in.
Diversification emerges as a significant factor in the allocation of capital to real assets, with 64% of investors citing it as a primary reason for allocating to real assets. Sixty percent of the surveyed investors see diversification as a key driver of their investments over the next two years, and the survey results indicate that diversification will continue to be a key driver of investments in real assets over the same period.
The survey findings suggest that real assets are becoming a safe haven for impact investors, with close to half of the real assets funds being made up of infrastructure impact funds. Key drivers for long-term capital allocation include megatrends such as climate change, the energy transition, digitalization, and ageing populations.
Of the 688 real assets funds followed by Phenix, close to 41% are currently open for investment. Pension funds were the most active investors in real assets funds, collectively committing to 221 funds.
The survey did not provide information on the total capital allocated to real assets by the surveyed institutions. However, in the past decade, these funds have raised more than €222bn in total capital.
Interestingly, farmland and cropland, which count for just 12% of the database, are dominated by billionaire investors seeking stability and steady returns. Emerging markets make up 17% of the real estate impact funds tracked by Phenix, with Africa and South and Central America being the most popular regions.
The 2024 Aviva Investors' Real Asset Study surveyed 500 institutional investors across Asia, Europe, and North America, providing a broad perspective on global real asset investment trends. As the real asset market continues to grow and evolve, the insights from reports like Phenix Capital's "2025 Real Assets" will undoubtedly remain valuable resources for investors and industry professionals alike.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Cars' Environmental Impact Explained
- Lawsuit of Phenomenal Magnitude: FIFA under threat due to Diarra's verdict, accused of player injustice
- Union IG Metall advocates for a swifter expansion of electrical mobility in the Eastern region.
