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Asked about the greatest risks to meeting investment objectives, 40% of U.S. institutional investors cited global equity market risk, followed by global fiscal imbalances (36%), geopolitical risk (32%) and changes in tax policies or regulations/laws (30%). Six in 10 (60%) say the issue of economic growth has a significant influence on investment decisions, while 50% call the European financial crisis a major influence on their decisionmaking. A substantial majority (85%) of U.S. institutional investors believes there will be a tightening of regulatory restrictions on financial institutions and capital markets participants, regardless of the outcome of the U.S. elections. Three in four (74%) believe U.S. financial institutions will have limits placed on their market-making abilities, resulting in their being less competitive. Asked to select up to three priorities for the next 12 months, 38% say their institution’s number one action will be to use strategies that limit exposure to market volatility. The second-ranked priority, chosen by 33% of U.S. institutional investors, is to pay more attention to actual measures of risk rather than average measures. The third priority (29%) is to increase the allocation to alternative or non-correlated assets. The online survey of 151 institutional investors in the United States was conducted by OnResearch in June and July 2012. Institutional investors surveyed manage or oversee corporate pensions, public/government pensions, funds of funds, sovereign wealth funds, insurance reserves/liabilities and/or endowments/foundations. The U.S. study is part of a larger global survey of 482 institutional investors in 13 countries in Europe, Asia and the Middle East, as well as the U.K. A copy of the global survey highlights is available at http://www.ngam.natixis.com/pressroom.
Asked about the greatest risks to meeting investment objectives, 40% of U.S. institutional investors cited global equity market risk, followed by global fiscal imbalances (36%), geopolitical risk (32%) and changes in tax policies or regulations/laws (30%). Six in 10 (60%) say the issue of economic growth has a significant influence on investment decisions, while 50% call the European financial crisis a major influence on their decisionmaking.
A substantial majority (85%) of U.S. institutional investors believes there will be a tightening of regulatory restrictions on financial institutions and capital markets participants, regardless of the outcome of the U.S. elections. Three in four (74%) believe U.S. financial institutions will have limits placed on their market-making abilities, resulting in their being less competitive.
Asked to select up to three priorities for the next 12 months, 38% say their institution’s number one action will be to use strategies that limit exposure to market volatility. The second-ranked priority, chosen by 33% of U.S. institutional investors, is to pay more attention to actual measures of risk rather than average measures. The third priority (29%) is to increase the allocation to alternative or non-correlated assets.
The online survey of 151 institutional investors in the United States was conducted by OnResearch in June and July 2012. Institutional investors surveyed manage or oversee corporate pensions, public/government pensions, funds of funds, sovereign wealth funds, insurance reserves/liabilities and/or endowments/foundations.
Rebecca Mooreeditors@plansponsor.com