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Despite further decline in yields, market returns and corporate contributions supported funding stability through last year, but schemes still remain severely deficit challenged and have worsened considerably since. As investors diversify,...
Downward fee pressure from all will be strong, especially Local Authorities will be strong, given this is a key driver behind pooling.
Recognised solicitation activity continues to strengthen year-on-year.
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.

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