ASSET
OWNERS
Asset owners need to invest more in private markets to access opportunities for higher returns, long-term growth, and portfolio diversification. Private assets offer the potential to tap into unique sectors such as private equity and infrastructure. To harness these opportunities effectively, transparent and robust data is paramount. This is why major pensions funds, insurers and sovereign investors use privateMetrics indices to support their investment decisions.
Private Market data for Asset Owners
Addressing investors' performance and risk measurement needs in private marketsManager Selection
Asset Owners need to measure the Alpha of the funds they invest in (or the investment teams they have internalised). Only then can they know if the fees they are paying are justified and the returns commensurate with the risks taken. Using privateMetrics market indices and custom benchmarks, it is possible to calculate the true alpha of private asset funds, and the share of the fund return driven by the market or by the manager asset allocation choices.
Asset Allocation
Asset Allocation is a first order question for any asset owner CIO: Allocating to private assets requires robust measures of risk, correlations and performance for individual asset classes. privateMetrics indices are computed in such a way that all these metrics are available and usable in a quantitative portfolio management context. Avoiding smoothed returns and unrealistic correlations also allows minimising the impact of the denominator effect.
Risk Reporting
Measuring and reporting risk are important fiduciary tasks for asset owners who need to be able to rely on robust measures of volatility and extreme risk built from sufficiently high frequency and up-to-date market data. privateMetrics provides CROs and risk teams with data putting private markets on an equal footing with public equities and bonds, including measures of value-at-risk or private equites or the duration of infrastructure investments.
Want to know more?
Contact a member of our team.privateMetrics® insights
the EDHEC Infrastructure & Private Assets Research Institute
