More than half (52%) of all institutional investors around the world plan to rethink over the next decade the traditional way they’ve always allocated the assets under their control, according to the results of a survey by Pyramis Global Advisors.
As the global economy downshifted since the financial crisis began in 2008, 41% of institutional investors surveyed said they have had to become more “tactical” and opportunistic in their investment decisions. Even with the new aggressive stance, large portions of those surveyed—29% in the U.S., 40% in Canada and 51% in Europe, for example—said they doubted they will achieve their return assumptions. (Interestingly, the survey revealed that global institutions seek to achieve median annual rates of return between 3% and 8% to cover costs and liabilities. Despite major changes in capital markets over the past several years, this required return rate has not changed significantly in four years.)