UK - Exposure to private equity and hedge funds remains low despite the majority of investors being "satisfied" with performance figures, a new survey reveals.
JPMorgan Fleming Asset Management’s study shows that although private equity is held by 48% of European institutions, the average level of exposure is just 3.3%.
Hedge fund exposure was found to be even lower, with 22% market penetration and an average portfolio exposure of 2.5%.
But this low level of investment was not found to be a symptom of dissatisfaction. Two-thirds of private equity and more than three-quarters (79%) of hedge fund investors felt returns had met or exceeded their expectations.
Head of institutional business, continental Europe, Peter Schwicht said: “Even when institutions are convinced of their benefits, there is a general reluctance to devote substantial levels of investment to asset classes like private equity and hedge funds.”
But Schwicht admitted that this low level of exposure could be symptomatic of the current difficult investment environment for both public and private equity.
JPMorgan interviewed 341 European institutions with a total assets of e1058bn (£732bn).
Nearly half (171) were based in the UK with assets of £360bn.
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