Just over 40 per cent of readers, who responded to the latest poll for FT Adviser Talking Point, would consider 10-15 per cent to be an appropriate amount of private market assets to hold in a multi-asset portfolio.
Almost a third (29 per cent) said 15-20 per cent was appropriate, while 14 per cent said between 5-10 per cent was appropriate.
The remaining 14 per cent believed over 20 per cent was appropriate.
Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, said as the search for yield intensified amid volatile public markets and a downward trend in interest rates, private assets offered a "tantalising promise" of diversification and enhanced returns.
McKeown added: “The appeal lies in their potential for higher returns through illiquidity premiums and unique opportunities not available in public markets.
“For institutions, private assets can constitute a significant portion of their portfolios, ranging from 10 per cent to 30 per cent. However, a more conservative approach is advisable for individual investors with less capacity to absorb illiquidity.”
At Sad Rabbit, the investment manager currently holds a 9.6 per cent allocation to private assets within its flagship multi-asset portfolio.
McKeown said: “This sub-10 per cent allocation reflects our forward-looking strategy, which dynamically adjusts based on market conditions and sentiment.
“We currently have a ‘neutral’ rating assigned to private assets; however, this could shift to ‘favourable’ towards the end of the year, warranting an increased allocation in 2025.”
