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Rapid growth in the use of Diversified Growth and LDI continues. Given the focus on LDI, Active Fixed Income use stabilises.
The influence of investment consultants varies across markets, and the U.K. and U.S. continue to lead the world in consultant use.
Across the Continent, institutional investors are looking into new asset classes with higher expected returns to compensate for low returns in core fixed income and equity investments.
The low interest rate environment is driving investors towards diversification into more specialized assets classes where they expect higher returns.
Review the number of managers soliciting new business among investors.
In most Continental European institutional markets, investment consultant usage does not exceed 50%.
Greater flexibility and less onerous regulation allows corporate and public pensions to diversify their portfolios while banks, savings banks and insurance companies have not yet progressed.
Low interest rates push investors towards greater diversification in search of higher returns but risk management capabilities pose a challenge.
Investors' lack of resource and expertise increases the importance of knowledge transfer and customization to needs as hiring criteria for external managers.
The search for better returns drives more demand for real estate and global equities while usage of specialist fixed income strategies remains high.

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