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Fees paid to external managers of Defined Benefit plans and investment pools.
Investment returns remained illusive for large institutional investors in 2016 (through Q2). Total assets grew 4% over the past year, with only 1% of the growth coming from investment returns.
Institutions report greater appetite for manager hiring across a range of active equity, fixed income, and alternative categories.
Managers are starting to utilize next generation segmentation approaches which move beyond demographic characteristics, focusing instead on client needs and behaviors.
Shifts in allocations vary dramatically by product category and channel. About 27% of corporate investors expect to significantly increase allocations over the next three years to U.S. fixed-income active investments.
Corporate DC plans decreased allocations for active U.S. and international equities.
Despite a volatile year in the markets, Canadian plans improved funding levels, but appear to be more focused on managing risk going forward. Managers are focusing more on outcome oriented strategies to address the shifting needs of institutional...
Canadian equity allocations continue their decline in portfolio allocations in favor of non-domestic equities and alternatives, particularly among larger investors.
Fees remained largely stable in 2016 for Active Canadian Equity Managers, Active U.S. Equity Managers, Active Int'l/EAFE Equity Managers, Active Canadian Fixed Income Managers.
Overall usage of consultants for traditional advice and manager selection services declined again in 2016 as smaller funds continue to outsource.

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