An estimated £67.4 billion ($137 billion) will be invested in alternative asset classes over the next four years, suggests new research by JPMorgan Asset Management. In a study of 282 institutions across 12 European countries, the UK-based investment arm of JPMorgan Chase, found that one-quarter have invested in the three primary alternative asset classes. And while the overall allocation to alternatives has remained stable at around 13 per cent, a number of significant trends have emerged since the previous survey in 2003. There has been no change in the level of investment in real estate and private equity, but there has been an increase in hedge fund investment. More than 60 per cent of those with investments in hedge funds are planning to increase their allocation, while 49 per cent of private equity investors and 30 per cent of real estate investors plan to increase their stake. Of those not planning to raise their allocation, the majority intend to maintain their current exposure. Very few investors are planning to reduce their overall exposure to alternatives. Intended levels of investment over the next two to four years include £18.3 billion in real estate, £11.5 billion in hedge funds, £11 billion private equity, £9.8 billion in infrastructure and £19.1 billion in "other" alternatives such as commodities and currency. Simon Chinnery, JP Morgan’s client advisor for UK Institutional Business, said investment in alternative assets had "come of age" since its last survey in 2003. "Respondents have greater conviction in their views; are buying alternatives for diversification as well as return, and demonstrate a sound understanding of the potential challenges and opportunities of investing in 'traditional' alternatives," he said. JPMorgan Asset Management is a global asset manager with $1.2 trillion in assets under management at 30 September 2007 and offices in 40 locations around the world.