Yes. Although investors do need to be mindful of the long-term transition occurring in energy markets, we don’t believe that mindfulness should preclude new investments in top-quality traditional private energy managers.
The potential for strong performance and use as a diversifier give private energy investments merit as part of portfolios.
A number of Asian private equity real estate managers that we view favorably are likely to fundraise in the latter half of 2017 and first half of 2018. We expect that many of these managers, while performing well, will face challenges raising additional capital as limited partners question the merits of investing in Asian property. In particular, US investors perceive the market to be overheated and have concerns about foreign currency risks. In this edition of Real Asset Dynamics, we examine and analyze these concerns further.
This chart book presents representative long-only and hedge fund manager performance for second quarter 2017. The median Global ex US Small-Cap manager posted the highest return for the quarter (8.9%), while the median Emerging and Frontier Markets manager posted the highest return for the trailing one-year period (24.0%). The median Cash Management manager posted the lowest return for the quarter (0.3%); for the trailing one-year period, the median Global ex US Bonds manager posted the lowest return (-0.6%).
Equity markets outperformed other asset classes, while monetary policy expectations continued to negatively impact bond markets during the fiscal year ending June 30, 2017. This brief chart book looks at returns and other market metrics for fiscal year 2017.
No. Market forces and technological innovation have been far more impactful on the energy sector than environmental regulations. Investors should maintain exposure to private energy and publicly listed energy equities, rather than view this event as a reason to overweight energy exposure.
Private equity energy fund raising is likely to hit an all-time high in 2017. In this edition of Real Asset Dynamics, we examine the trends in fund raising, commitments, and investments in energy and their implications.
This chart book presents representative long-only and hedge fund manager performance for first quarter 2017. The median Emerging and Frontier Markets Equity manager posted the highest return for the quarter (11.9%), while the median US Small-Cap Value manager posted the highest return for the trailing one-year period (23.7%). The median Cash Management manager posted the lowest return for the quarter (0.3%); for the trailing one year, the median manager in only one strategy, Global ex US Bonds, posted a negative return (-1.3%).
Within impact investing, real assets investments constitute one of the largest opportunity sets. This report presents findings from our analysis of the financial performance of 55 private real assets impact investing funds across three sectors: timber, real estate, and infrastructure. We find that risk-adjusted market rates of return are achievable in impact investing, but note that as with conventional funds, manager selection is key to success.
New private infrastructure fund investors can find value in carefully evaluated managers and strategies, but they should ratchet down return expectations relative to years past.