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Trends Affecting the Institutional Investment Landscape

10 recent papers exploring trends in institutional investment

Especially when institutional investors are engaged with bottom-up analysis, broader trends affecting the investment landscape may be overlooked.  So what are some of the current trends affecting the institutional investment environment?

Demographics, long-term and short-term thinking, ESG, active vs. passive investing, and technological factors are all examined as trends worthy of note in the following papers.

Savvy Investor

Is short-term thinking on the rise? (Franklin Templeton, 2017)
(For compliance reasons, this paper is only accessible in the EMEA region)
A global survey of 571 institutional investors shows how investment horizons and portfolio allocation strategies have adapted to shifting underlying factors such as regulatory change, political instability, technology, and climate change.

Sustainability disclosure helps drive investment decisions (Eaton Vance, 2017)
(For compliance reasons, this paper is only accessible in US and Canada)

A recent HBS study finds that sustainability disclosure is helping to drive investment decisions, as investors use that information to enhance company valuations relative to industry peers.

Demographic dividends, corporate challenges (LGIM, Nov 2017)
(For compliance reasons, this paper is NOT accessible in the USA and Canada)

Increasing life expectancy is one of the most profound success stories of the post-war era. The pace and scale of this human success story has been remarkable, but it is creating its own challenges for corporates.

Active Strategies, Indexing and the Rise of ETFs (BlackRock, Oct 2017)
(For compliance reasons, this paper is only accessible in the USA)

Institutional flows into ETFs are expected to grow to $300B annually by 2020. This paper presents the results of a comprehensive study of the global institutional market for ETFs.

Asset Intelligence: Growth Readiness for Asset Owners (State Street, Oct 2017)
How can institutional investors be more successful in protecting and growing assets? This report from State Street identifies key areas that asset owners should prioritize to strengthen their growth strategies.

Supertrends - Investing for the Long Term (Credit Suisse, 2017)
This 97-page Credit Suisse report analyses the key trends affecting long-term investing, such as geopolitics, demographic shifts, and rapid technology change, and how these movements affect portfolios' risk/return profiles in the long run.

Asset Management Talent & Compensation Trends (Heidrick & Struggles, Sept 2017)
The current market for labor is highly competitive. This report includes the results of a wide-ranging survey and presents market insights to help asset management firms to institutionalize and professionalize their teams and strategies.

Technology Transforms the Financial Landscape (BlackRock, Sept 2017)
Investors must pay more attention to secular forces such as demographic trends and technological innovation that are transforming the financial and economic landscape.

Passive Investing: An index isn't a fiduciary (Wellington Management, Sept 2017)
In this article, the author shares seven concerns that he believes investors must address as they consider how both passive and active strategies can help them achieve their investment objectives.

ESG Institutional Investor Survey: Performing for the Future (SSGA, 2017)
Although ESG principles are increasingly seen as capable of improving investment returns, the challenges that inhibit their adoption are examined and pathways are described that could facilitate ESG integration into the investment process.

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