Public sector pension funds and sovereign wealth funds will continue to lead the charge into infrastructure and real estate at risk of creating new asset bubbles, according to a review of their asset allocation by researchers at the Official Monetary and Financial Institutions Forum.

Following its survey of 500 public sector institutions managing $29.7 trillion, which was carried out last November and outlined in Beijing today, Omfif has estimated that they currently own real estate and infrastructure worth $2.7 trillion, equivalent to 9.1% of total assets. Around 44% of respondents from the sector said they would raise their exposures in the next three to five years, a far higher proportion than any other asset class.