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ETFs in the European Institutional Channel: 5 Key Trends

26 January 2016 By: Andrew McCollum
ETFs are becoming a staple of European institutional equity portfolios. 
U.S. Institutions intend to make the largest increases in target allocations over the next three years to commodities, EMD, and real estate.
Non-traditional assets continue to inch higher, now occupying more than one-quarter of portfolio assets on average.
Target date funds continue to occupy a larger proportion of DC investors' portfolios, mainly at the expense of stable value.
Given modest asset growth and flat funding levels, institutional investors continue to face a myriad of challenges, ranging from portfolio underperformance to market volatility and risk management.
Total U.S. institutional assets increased for the sixth consecutive year, this year appreciating by approximately 3%.
Average fees paid in equities and fixed income show slight decreases in 2015 from the year prior.
Product demand will increasingly reflect specific investor needs.
Non-traditional assets continue to inch higher, now occupying more than one-quarter of portfolio assets on average.
Target date funds continue to occupy a larger proportion of DC investors' portfolios, mainly at the expense of stable value.

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