• This article details some statistics on alternative assets drawn from the III Annual Report of the Asset Securitization Sector 2025-2026, prepared by FlexFunds in collaboration with Funds Society.
• The information is primarily aimed at asset managers seeking to understand the benefits and uses of alternative assets in portfolio construction.
• FlexFunds offers an asset securitization program that helps enhance the liquidity of certain alternative investments. For more information, feel free to contact our experts.

Alternative assets are gaining increasing weight in institutional investment strategies, mainly because they allow portfolio diversification, reduced exposure to systemic risks, and access to uncorrelated sources of return.

In fact, according to the III Annual Report of the Asset Securitization Sector 2025-2026, 25% of surveyed asset managers are allocating between 50% and 90% of their portfolios to alternative assets.

“This suggests that there is a pioneering segment that views this class as a strategic source of diversification and risk-adjusted returns. This group may act as a reference for the rest of the industry, driving adoption as more structured vehicles are created, transparency increases, and financial education on this class expands,” the report explains, prepared by FlexFunds in collaboration with Funds Society.

Real estate ranks among the most popular alternative assets

Although many assets are considered alternative, the most important ones include private equity, infrastructure developments, real estate, hedge funds, and cryptocurrencies.

Among these, real estate assets stand out above the rest, as they can be invested in directly or through structured vehicles, such as Real Estate Investment Trusts (REITs).

“Real estate provides diversification, recurring income, and generally low correlation with traditional liquid assets. However, its role in portfolios depends largely on the investor’s profile, investment horizon, and economic context,” details the III Annual Report of the Asset Securitization Sector 2025-2026.

The study revealed that while 30% of managers assign low importance to including real estate assets in investment portfolios (levels 0–2), 43% value them within medium-to-high ranges (7–10), demonstrating a solid core of participants that recognizes their strategic potential.

Likewise, the average of 5.0, with the median at the same level and a mode of 8, reflects that perceptions tend toward a favorable consideration, with the most frequent valuation being high.

“The importance of real estate as a protection mechanism against volatility does not generate consensus, but there is evidence of selective adoption, particularly among those seeking resilience and stability in highly uncertain scenarios,” the report notes.

Social impact is not a priority

Another point highlighted by FlexFunds was that investors are not as willing to accept lower returns in exchange for greater social impact.

The survey, conducted among experts from more than 100 investment firms across 19 countries, shows that 46% of managers believe investors demonstrate very low willingness to give up returns for greater impact.

And only 9% perceive high willingness, mainly linked to specific niches such as institutions with ESG mandates, high-net-worth clients with a philanthropic focus, or impact-oriented vehicles, which still lack significant weight in the market.

“This assessment highlights a significant gap between sustainability rhetoric and actual investor behavior. While ESG criteria are gaining presence in product design, profitability remains the main decision driver,” the report states.

And it adds: “Reputational or regulatory pressure may encourage greater integration of impact in the future, but for now, most managers do not perceive sufficient client willingness to accept relative losses in exchange for social or environmental benefits.”

To discover more about the asset management industry, you can download the III Annual Report of the Asset Securitization Sector 2025-2026 for free, prepared by FlexFunds in collaboration with Funds Society.

To learn more about FlexFunds and our asset securitization process, you can contact our team of specialists directly. We’ll be glad to assist you!