Alternative investing is on the up, according to the latest Invesco survey of European institutional investment trends.
The European Institutional Asset Management Survey (EIAMS) of 125 financial institutions - including pension funds, insurance companies and foundations, across Germany France Italy and the Benelux region - revealed that 91% of investors believed that the asset class will develop significantly.*
In France, the main reason cited for using alternatives was risk diversification.
Other findings included:
-Only 38% of investors reported an increase in assets under management (AUM) during 2000, compared with 65% in 1999. But 69% of respondents claimed that AUMs had increased or stabilised during 2000, despite market volatility.
-Overall, fixed income remained the preferred asset class (51%) compared with equities (24%). However, bonds were most favoured in Germany, France and Italy, compared with the Benelux region which was overweight in equities, averaging at 41.8%.
-Passive management remained the favourite investment style (35%), closely followed by value style (31%) and growth (24%).
-Fund of funds products were also most favoured in France where 58% of investors used them, but in Germany 90% of investors claim never to use them.
-Open-ended fund vehicles are most popular in France and Italy - where they are gaining popularity - but tend to be ignored In Germany, where 86% of investors prefer the ‘spezialfond’.
-Allocation to external asset managers remained stable, with 62% of those surveyed outsourcing. The majority of institutions (39%) outsourced their management of equities. However, the survey also revealed that the most investors do not plan to increase business to external managers.
-Investment horizons also seem to have lengthened with the overall outlook now medium to long-term.
-Consultants are also expected to increase their influence with just less than 80% of investors saying consultant use is on the up.
*Those surveyed had reported combined assets of EUR479bn.
By Madhu Kalia
Some of the UK's biggest pension schemes will be forced to report on climate risk in line with recommendations from the Taskforce for Climate-related Financial Disclosures (TCFD).
TPT Retirement Solutions has launched a pension scheme for the education sector which offers schools both defined contribution (DC) and defined benefit (DB) pension provision.
The People's Pension has revealed plans to overhaul its charging structure, cutting fees and returning profits to members with an aim to help people save more money for retirement.
Data consultancy ITM has appointed Akash Rooprai as head of client management to lead its de-risking business.