US - Institutional hires in alternative investments and real estate increased in the first two quarters of 2011 at the expense of domestic active equity and fixed income, new research shows.
Alternative investments comprised 42% of placements in 2011's first two quarters compared to a 37% average over the past six years, analysis by investment management consultant Eager, Davis & Holmes reveals.
The firm's mid-year report from its Tracker Hiring Analytics database found there were 501 alternative investment placements in the first half of 2011, totaling $28.5bn. Over the same period, there were just 152 US equity placements worth $6bn and 106 US fixed income appointments totaling $11.4bn.
"Investments that address special situations or are favored in an inflationary environment are seeing more hiring activity," said partner David Holmes. "Examples are oil and gas, commodities, timber, real assets, credit, and bank loans.
"The other side of the coin is that domestic active equity placements are down 42% in dollar terms for new mandates in the first two quarters of 2011 relative to 2010. US active fixed income mandates are down slightly from 2010, but with strong hiring activity in some fixed income styles, including core plus, bank loans and credit-oriented mandates."
According to the report, PIMCO captured the most mandates over the past six quarters measured in terms of number of mandates. Blackrock, State Street Global, JPMorgan and Wellington also made the top five.
Fellow partner Dave Eager added: "The high demand in specialty areas continues and underscores the importance of consultative selling to meet fund sponsors' changing needs."
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