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The Markets April 7, 2011
Institutional Investment in North America Changing, Survey Finds
Ongoing portfolio globalization and the increasing role
of “alternative” investments - hedge funds, private equity and real
estate - are expected to reshape institutional investment in North
America.
Reported by Rebecca Moore
The 2011 Consultant Search Forecast conducted jointly by eVestment Alliance and Casey, Quirk & Associates predicts a greater emphasis on outcome-oriented portfolios constructed by risk budgeting and return attribution.
The survey found more than one-third of consultants expect more emerging markets equity and less international developed markets activity for the remainder of the year. More than half of U.S. equity, U.S. bond and EAFE searches will involve manager replacements in 2011.
Half of those surveyed expect an increase in institutional interest in inflation hedging strategies this year, while more than one-third of investment consultants surveyed anticipate a boost in liability driven investing (LDI) mandates in 2011.Three-fifths of consultants expect moderate or strong bond search activity this year. Consultants expect significant increases in private equity and real estate mandates in 2011.
“eVestment and Casey Quirk hope that the latest search expectations provide a clear picture on how North American institutional investors should adapt to the changing investment frameworks and increasingly competitive environment,” said eVestment Principal and Founder Heath Wilson.