Institutional investors attracted to emerging markets and alternatives

24 May 2011
| By Caroline Munro |
image
image
expand image

Institutional investors are increasingly interested in emerging markets and alternative assets to enhance diversification in their portfolios, according to Mercer’s Global Manager Search Trends 2011 report.

The report revealed that globally manager search activity increased in 2010, with search activity in Australia almost doubling, from 120 in 2009 to 216 in 2010. The report noted that in Australia there was a sharp rise in assets placed, from US$7.7 billion to US$14.9 billion.

Manager search activity also revealed an increased interest in real estate, emerging market equities and niche areas, such as commodities. Investors also sought diversification through international and domestic equity.

“We saw a lot of manager movement in Australian equities last year and search activity focused on smaller fund asset managers with highly rated teams,” said Mercer head of manager research for Asia Pacific, Marianne Feeley. “Our clients have also been looking for small cap managers, as small cap outperformed large cap in 2010. Another possible driver behind the increase in Australian equity searches is the tendency of some managers, particularly boutiques and small cap, to close to new investments.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

7 hours ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

12 hours ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

1 day 5 hours ago