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

When. Not If.

With market volatility making a comeback, what’s keeping institutional investors up at night?

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.

84817874
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.

Download Survey