At the halfway mark of 2019, we see continued enthusiasm for alternatives among investors. Investors we surveyed in June remain upbeat about the future performance of alternatives, but are aware this may not continue. A growing proportion of investors believe we are at the peak of the equity market cycle and that a market correction is imminent.

In this H2 2019 edition of our Investor Outlook series, we explore investor sentiment with regard to individual alternative asset classes, and find out how they are planning to position their portfolios in the year ahead. We also speak to CalPERS about how they have integrated ESG factors into their investment portfolio.

Key findings:

• Performance has satisfied most investors across private equity, private debt, real estate and infrastructure.
• More investors intend to increase their capital commitments to private equity and private debt than decrease them over the coming year.
• In real estate and infrastructure, investors are concerned by asset valuations, and are exercising caution.
• Hedge fund investors are looking to position their portfolios more defensively for asset protection.
• More investors are looking to incorporate ESG principles into their mandates.

All the data in this report is also available to download in Excel format.