Key insights
- A KPMG survey indicates growing interest in GPU assets among high-net-worth investors, driven by capital appreciation and diversification. While current allocations are low, investors anticipate increasing exposure, particularly through structured products like ETFs. Challenges remain regarding understanding and trust, but collaboration with established financial institutions could boost adoption, indirectly benefiting US equity markets through increased investment in technology.
Investing.com -- Technology assets have overtaken real estate and private equity as the most popular area within alternative investment portfolios, according to new research from KPMG and Nuway Capital released Tuesday.
The survey of 120 high-net-worth individuals, family offices and wealth managers across ten international markets found that 75% are now optimistic about GPU assets, with capital appreciation and portfolio diversification driving interest.
Technology-related assets have become the most widely held thematic area within alternative portfolios, with 72% of respondents having invested in or advised on technology assets in the past three years. This figure edges ahead of real estate at 71% and private equity or venture capital at 61%.
Within the technology sector, GPU assets are gaining traction based on conventional investment criteria. Capital appreciation potential and portfolio diversification were cited by 70% and 54% of respondents respectively as primary motivations, ahead of interest in technology and innovation at 47%.
"Investors are no longer approaching GPUs purely as a technology play. They are applying the same rigorous criteria used to evaluate infrastructure or private credit: durability of demand, cycle resilience and potential for differentiated returns," said Colin Bosher, founder of Nuway Capital.
Current portfolio allocations to GPU-related assets remain at an early stage, with a significant proportion of respondents reporting no exposure. The data shows an anticipated increase in weightings across the 11-20% allocation band.
The report identifies challenges to broader adoption. Over half of respondents, 58%, cited difficulties in managing or understanding GPU assets, while 43% noted a lack of trust in the current investment class.
Investors indicated that increased availability of structured products such as ETFs and funds at 68%, collaboration with established financial institutions at 67%, and clearer alignment with AI and machine learning trends at 58% would help accelerate adoption.
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