Large institutional investors including pension funds, have their sights for 2014 set on alternative investments, such as real estate and real assets, according to a survey by BlackRock.

"Institutional investors are seeking to build portfolios better suited for an investment landscape characterized by low yields, sluggish growth, volatile markets, and rising correlation between stocks and bonds," said Robert Goldstein, senior managing director and head of BlackRock's Institutional Client Business and BlackRock Solutions, in a statement.

To that end, 49 percent of those surveyed said they planned to move into real estate, while 40 percent said real assets had captured their attention. One-third said they would reduce their cash reserves this year.

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