2014.06.2302:36:42UTC+00Bonds and equities alternatives to receive more attention from state investors

Investment manager Invesco Ltd. has uncovered a recent trend showing managers of sovereign wealth looking to direct money beyond the usual markets for bonds and equities.

Through the Invesco Global Sovereign Asset Management Study 2014 that involved interviews with 52 investors including pension funds and sovereign wealth funds, Invesco claims that more state investors have began exploring to diversify their assets by entering private equities and infrastructure.

A net 64% of those who participated in the survey said that domestic private equities will receive a bigger share this year, while 60% will do the same for real estate around the world and 53% will allocate more for global infrastructure.

Norway started their diversification in 2010 and has so far made real estate equal to 1.2% of their first quarter assets through their Government Pension Fund Global. Korea looks to do the same after it announced earlier in April that their sovereign wealth fund will invest twice the amount in alternatives during the next decade.

Additionally, while most respondents maintained that priority will still be given towards developed markets, it is the intent of many state investors to invest more in assets from emerging markets. Of these, Latin America was the most popular where a net 43% said an increase will happen followed by the 40% of Africa. In Asia, China was on top with 38% ahead of the rest of emerging Asia and India with 31% and 30% respectively.