EUROPE - Across the European continent, institutional investors are using more external management expertise. This is a key finding of a recent study by US consulting firm Greenwich Associates, based on interviews with nearly 300 large funds and other institutional investors in continental Europe.
External investment managers have become increasingly popular with continental institutions as those institutions adopt more speciality management, moving more of their assets into areas where they have less experience, Greenwich consultant Berndt Perl says.
According to Greenwich research, the average number of managers used for segregated accounts rose to 5.7 in 2001, up from 5.2 in 2000 across the Continent. Increases were especially marked in Switzerland (from 6.3 to 7.4), Spain (from 3.0 to 5.1), and Italy (from 2.8 to 3.8).
42% of all continental sponsors plan to hire additional external managers in 2002. Speciality mandates are becoming more popular, with demand rising from 33% in 2000 to 38% in 2001.
We’ve seen movement away from some of the large balanced mandates towards more specialised mandates,” said Greenwich consultant Rodger Smith. A majority of new mandates have gone to foreign managers.
Greenwich added that concerted marketing efforts by international investment management firms have contributed to the strong increases seen in most countries.
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