2014 Canadian Institutional Investors - Planned (Target) Allocation Shifts - Graphics
Corporates are seeking to derisk and diversify while publics actively seeking returns to close persisting funding gaps.
Corporates are seeking to derisk and diversify while publics actively seeking returns to close persisting funding gaps.
Equity trading desk budgets remained flat in 2014.
Fixed income trading desk budgets increased in 2014.
Investors shifted towards passive U.S. equities this year, but the commitment to active in other categories remains strong.
Asset allocation targets are expected to shift away from equities and towards fixed income and alternatives over the next three years.
Demand for global equity is expected to be strong next year along with U.S. equity and emerging markets.
While funding levels remain the key issue, risk management increased in importance across both corporate and public funds.
New manager hiring is expected to remain robust in 2015.
DB plans dominate both corporate and public plans, but DC plans are anticipated to make inroads with corporate plans over the next 10 years.
Allocations to Canadian equity continued their decline while international equity and hedge fund allocations increased modestly.
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