Global Institutional Investors Brace for Market Risks and Pursue an Active Approach in 2018 – BlackRock Study
Faced with low interest rates and relatively high valuations for risk assets, large global institutional investors are looking to protect themselves against downturn risks through maintaining their cash levels and selectively increasing allocations to active strategies, according to a new survey by BlackRock.
While 65% of clients plan to leave cash allocations unchanged for the year ahead, the survey shows an interest in active management among institutional investors, which should play out across a diverse set of alternative asset classes, including illiquid assets and hedge funds, and also within public equities.
The survey of 224 institutional clients globally, representing $7.4 trillion1 in assets, found that illiquid or real assets remain the frontrunner within the private market universe for large global institutional investors and are expected to be the largest beneficiary of asset flows. Three fifths (60%) of institutional investors globally are expecting to increase their allocations to Infrastructure and Renewables.
Real Estate is similarly set to gain, with more than two fifths (42%) of institutions increasing allocations to the asset class. Over two fifths of institutions (43%) are looking to increase private equity allocations globally.
“Clients’ intention to reallocate to private markets and other highly active strategies is a recognition that global risks persist and of the value of portfolio managers’ skill. Despite synchronized global growth, our overall return expectations for most segments of institutional investors are well below their return targets”, commented Edwin Conway, Global Head of BlackRock’s Institutional Client Business. “Maintaining current cash levels and increasing allocations to active managers may seem counterintuitive. But for many of our clients, it’s their two-pronged strategy for navigating risk and potentially volatile markets.”
Hedge funds set for inflows, active equities in favour
Hedge funds appear to be back in favour with investors, who have shifted from an intended decrease in 2017 to an anticipated increase in 2018. One fifth of those surveyed (20%) plan to increase their allocations to hedge funds.
Despite an anticipated overall decrease in equity allocations, almost one quarter of institutions (24%) expect to shift allocations to active relative to index investments, versus 16% that plan to do the opposite.
Alternative credit set to capture fresh capital
Globally the hunt for yield means alternative forms of credit such as private credit remain attractive, with over half of respondents (58%) looking to increase allocations.
Within credit more broadly, emerging markets also find favour, with almost two fifths (37%) looking to increase allocations here. Overall a decrease is expected in core and core plus allocations (28%), a consistent trend in the survey’s year-over-year results.
Edwin Conway adds: “In the current environment of record-high asset performance, we believe that active portfolio decisions need to be taken by institutional investors this year. For several years, we have been talking to clients about the need to embrace alternative strategies as a way to add diverse sources of return, and offset the current rate environment. It’s gratifying to see them continuing to embrace these assets as they slowly become the norm for institutional investors seeking differentiated sources of return, inflation hedging and counter-cyclical investments.”
About the survey
BlackRock conducted a global survey of 224 of its largest institutional clients representing over $7 trillion in assets over a three week period in October and early November 2017.
Rebalancing survey data
|In 2018, how do you anticipate changing your allocations to the following?|
|% increase||% unchanged||% decrease||
|Type of client||% of respondents|
|Endowment or Foundation||4%|
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of December 31, 2017, the firm manages approximately $6.288 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com
This material is for distribution to Professional Clients (as defined by the FCA or MiFID Rules) and Qualified Investors only and should not be relied upon by any other persons. For qualified investors in Switzerland: this document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended.
Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: 020 7743 3000. Registered in England No. 2020394. For your protection telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited.
In Hong Kong, this material is issued by BlackRock Asset Management North Asia Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. This material is for distribution to "Professional Investors" (as defined in the Securities and Futures Ordinance (Cap.571 of the laws of Hong Kong) and any rules made under that ordinance.) and should not be relied upon by any other persons or redistributed to retail clients in Hong Kong. In Singapore, this is issued by BlackRock (Singapore) Limited (Co. registration no. 200010143N) for use only with institutional investors as defined in Section 4A of the Securities and Futures Act, Chapter 289 of Singapore. In Taiwan, Independently operated by BlackRock Investment Management (Taiwan) Limited. Address: 28/F, No. 95, Tun Hwa South Road, Section 2, Taipei 106, Taiwan. Tel: (02)23261600. For recipients in China: This material may not be distributed to individuals resident in the People's Republic of China ("PRC", for such purposes, excluding Hong Kong, Macau and Taiwan) or entities registered in the PRC unless such parties have received all the required PRC government approvals to participate in any investment or receive any investment advisory or investment management services. In Australia, issued by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523 (BIMAL). This material is not a securities recommendation or an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction. The material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should therefore assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. BIMAL, its officers, employees and agents believe that the information in this material and the sources on which it is based (which may be sourced from third parties) are correct as at the date of publication. While every care has been taken in the preparation of this material, no warranty of accuracy or reliability is given and no responsibility for the information is accepted by BIMAL, its officers, employees or agents. Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions in this material are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this material. No guarantee as to the repayment of capital or the performance of any product or rate of return referred to in this material is made by BIMAL or any entity in the BlackRock group of companies.
In Canada, this material is intended for accredited investors and permitted clients only.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or a strategy. Capital at risk. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
This release will be for distribution in the US, for a retail audience.
© 2018 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
|All assets shown are in USD|
The net change is the difference between the percent of firms intending to increase MINUS the percent of firms intending to decrease. This is an indication of intent and provides a simple one-number ‘score’ for movement within a particular asset class but is not a reflection of likely flows. This material contains general information from the 2018 rebalancing survey and is not intended to represent general or specific investment advice.
|Single family office/multi-family office|
Roland Leithaeuser, +44 (0) 2077432544
Melissa Garville, +1 212-810-5528
Cynthia Ng, +852 390 325 53
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
emporia Showcases Four Products at Mobile World Congress21.2.2019 13:00:00 | Tiedote
According to a 2018 emporia survey, 31 per cent of people over 65 and 50 per cent of 65 to 70-year-olds own a mobile phone with internet access. Meanwhile 85 per cent of smartphone users over the age of 65 use WhatsApp or other messenger services to stay in touch with friends and family. 59 per cent of grandchildren use WhatsApp to share their lives with grandparents. emporiaTOUCHsmart TOUCHsmart is a new clamshell smartphone from emporia. The combination of touch screen and physical keyboard is tailored to the needs of older generations. WhatsApp is pre-installed with a shortcut button, while emporia’s famous emergency system – which automatically calls up to five numbers at the touch of a button - instis a sense of security. emporiaSmart.3 The new Smart.3 smartphone has clear menu navigation in a stylish design. It features a 13 megapixel rear and 8 megapixel front camera and has a physical home button to make it simple to return to the main menu. The smartphone is splash proof and i
Toshiba Memory Corporation Develops New Bridge Chip Using PAM 4 to Boost SSD Speed and Capacity21.2.2019 12:52:00 | Tiedote
Toshiba Memory Corporation, the world leader in memory solutions, today announced the development of a bridge chip that realizes high-speed and large-capacity SSDs. Using developed bridge chips with a small occupied area and low-power consumption, the company has succeeded in connecting more flash memory chips with fewer high-speed signal lines than with the conventional method of no bridge chips. This result was announced in San Francisco on February 20, at the International Solid-State Circuits Conference 2019 (ISSCC 2019). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190221005378/en/ Fig. 1 Connection using bridge chips (Graphic: Business Wire) In SSDs, multiple flash memory chips are connected to a controller that manages their operation. As more flash memory chips are connected to a controller interface, operating speed degrades, so there are limits to the number of chips that can be connected. In order to increase ca
Meggitt Training Systems to Highlight Expanded Virtual and Live-Fire Solutions at IWA Outdoor Classics21.2.2019 12:00:00 | Tiedote
With two European facilities to serve shooting range customers across the continent, Meggitt Training Systems will feature the latest virtual and live-fire products March 8-11, 2019, at IWA Outdoor Classics (stand #3-211) in Nuremberg, Germany. A leader for more than nine decades in the design, equipment and installation for law enforcement, defense and commercial ranges, Meggitt Training Systems has fielded more than 13,000 range systems worldwide, including over 75,000 live-fire target systems on 122 military bases. “Meggitt understands and serves Europe’s unique live-fire training requirements thanks in part to our regional facilities in Ashford and Waardenburg,” said Mark Mears, managing director for Meggitt Training Systems Ltd. “IWA Outdoor Classics attendees are welcome to see how our unrivalled expertise can facilitate the design and construction of new and upgraded shooting ranges.” Meggitt’s display of products at IWA will include: The XWT ProImage® projected target system re
GSMA: Low Power Mobile IoT Networks Now Available from All Leading IoT Operators Worldwide21.2.2019 12:00:00 | Tiedote
The GSMA today announced that Mobile IoT or Low Power Wide Area (LPWA) networks are now globally available in licensed spectrum in 49 markets1 around the world following 93 launches by 50 different mobile operators across both LTE-M and NB-IoT. Coverage is now expected to reach approximately 93% of the world’s largest IoT markets by Q2 20192. According to GSMA Intelligence forecasts, by 2025 there will be 3.5 billion cellular IoT connections, including 1.9 billion licensed LPWA connections3. “The speed with which these networks have been standardized and deployed around the world is staggering. They are now available in every major IoT market encouraging the development of innovative new products and services across a wide range of sectors,” commented Alex Sinclair, Chief Technology Officer, GSMA. “The market clearly sees the benefit of solutions in licensed spectrum that offer flexibility, adaptability, security and lower cost. They are also future proofed for the 5G era and will supp
New GSMA Report Highlights Global Role of Intelligent Connectivity21.2.2019 12:00:00 | Tiedote
The GSMA today issued a new report, ‘Intelligent Connectivity: How the Combination of 5G, AI, Big Data and IoT Is Set to Change Everything ,’ highlighting how 5G networks, artificial intelligence (AI), smart platforms and the Internet of Things (IoT) is set to transform the lives of citizens and businesses around the world. The in-depth report draws on fresh interviews with senior representatives from Deutsche Telekom, GSMA Intelligence, KT Corp, Telefonica and Vodafone and outlines how the convergence of computing and communications will drive a step-change in productivity by delivering real-time services across multiple sectors such as entertainment, transportation and manufacturing. GSMA Intelligence estimates that there will be 1.4 billion global 5G connections by 2025 accounting for more than 15 per cent of the mobile market. “The combination of 5G, the IoT, Big Data and AI will impact almost every aspect of our daily lives from the way we consume entertainment to the way in which
IDEMIA, Infineon and pmdtechnologies Are Partnering to Provide an End-to-End 3D Face Recognition Solution21.2.2019 11:15:00 | Tiedote
IDEMIA, the global leader in Augmented Identity, is proud to announce a close partnership with Infineon and pmdtechnologies. Combining latest hardware from Infineon and pmdtechnologies and cutting-edge 3D Face biometric software from IDEMIA, the companies offer a seamless experience to end-users. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190221005348/en/ (Photo: Business Wire) The IDEMIA 3D Face recognition solution, which was unveiled at the last edition of the Mobile World Congress and that pioneers 3D acquisition technologies, reflects smartphone users’ demand for simplification, efficiency and security. IDEMIA, Infineon and pmdtechnologies are combining their high-level expertise for this 3D Face recognition solution to provide a complete solution for OEMs and system integrators that delivers an optimal user experience, focusing on convenience, extremely fast recognition and bullet-proof security. IDEMIA, Infineon a
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme