Three Ways Institutional Investors Are Preparing for the Fallout of a Market Shift

From asset bubbles to interest rate increases to low yields, the Natixis Global Survey of Institutional Investors reveals their top concerns – and how they seek to meet average long-term return assumptions of 7.2%.

1. Institutional investors are looking for opportunity in the uncertainty

What will impact investment performance in 2018?
(% who said negative impact)

geo events  asset bub  int rate env  low yield env   unwind eas

 

Active investments are on the rise
Institutional investors have been upping allocations to active investments for the last three years in anticipation of market volatility – a trend that looks likely to continue1.
• Active Investments  •  Passive Investments

2015 survey      2016 survey
2017 survey

And so are alternatives
The majority of institutional investors are also looking to alternative investments to diversify, help manage mounting risks, and pursue potential returns.

7 in 10B

See how institutions are using specific alternative classes. Download the report.


2. Risk management is in the spotlight again

With market volatility back in the picture, institutional investors are employing a range of strategies to help manage risk.

84 81 7874

64   46   40

Learn more about how institutional investors are managing risk. Download the report.


3. Regulatory controls are still top of mind

Institutional investors are still grappling with the impact of tighter regulatory controls – though it’s getting easier. Fewer institutional investors say complying with new regulations is a challenge.

2015 80percent  2017 68percent250h

Many institutions are looking to hire or outsource the specialized talent needed to fully deliver on investment expectations.

outsourced

Get deeper insight into how institutions are approaching regulatory challenges and outsourcing. Download the report.


Read the full Report

The Natixis Investment Managers Global Survey of Institutional Investors was conducted by CoreData Research in September and October 2017. The survey included 500 institutional investors in 30 countries. Get the whole story.

Published in March 2018

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This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.

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