The commitment of institutional investors in alternative assets has plateaued, according to Preqin's latest investor survey.
The Preqin Investor Outlook: Alternative Investments H1 2022 report, based on a survey carried out in November last year, shows around a third of investors have no plans to introduce an active ESG policy in the next 12 months. However, more than half already have a policy in place for real estate or intend to introduce one.
However, 35% of investors in alternative assets consider ESG issues to be of extreme or considerable importance in investment decisions, compared with 28% who believe they are of low or no importance. Opinion was split on whether ESG-focused funds perform better or worse, with more than half saying there was no difference in performance.
Lack of data, knowledge about ESG and the inability to integrate ESG data with quantitative models were amongst the reasons cited for why ESG was not a consideration in investment decisions. However lack of demand and lack of value added by ESG were also cited.