"Alternative investments are here to stay"
In future, institutional investors will pay greater attention to alternative investments, even if more conventional assets for long-term investment such as fixed income are able to recover in the coming years. Alternative investments are here to stay, and in the future, this asset type will occupy a greater space in investor portfolios. These were some of the reflections shared by José Luis Jiménez, Chief Investment Officer at MAPFRE, at the recent Managing Assets for Insurers digital conference organized by British newspaper the Financial Times.
In an interview with FT journalist Oliver Ralph during the conference, Jiménez accepted that something of a bubble may at times appear to be forming, given the growing competition for these types of alternative assets and the participation of new investors in recent months. He emphasized that the best way to avoid market pitfalls is to collaborate with the best possible partners for each asset type.
And this is precisely the strategy that MAPFRE is pursuing in its alternative investments. Jiménez pointed out that, in recent years, MAPFRE has sought co-investment partners with specific knowledge and experience in this investment type. These partnerships include: in infrastructure, Macquarie (the global leader in its sector); in real estate assets, Swiss Life and GLL (a subsidiary of Macquarie); in renewable energy, Iberdrola; and in venture capital, Altamar.
A total of over 1 billion euros has been allocated to these investments across various projects, with the Group's total assets now standing at over 65 billion euros.