In order to be better positioned for a changing market, respondents in the 2017 Natixis Global Survey of Institutional Investors appear to be making adjustments to allocation plans rather than a wholesale shift in portfolio strategy. Key investment trends include:
- Active management: Institutions demonstrate a clear preference for actively managed investments and continue to allocate the majority of assets to these strategies.
- Regional diversification: On the heels of double-digit returns for the S&P 500 in 2017, institutional investors are betting on Europe and Asia as growth drivers for 2018.
- Alternative investments: Low yields have institutions looking for fixed income alternatives and in many cases focusing on the higher return potential of private markets.