Opalesque Industry Update: Private equity, hedge funds and real estate will drive a combined 20% of all manager search activity in the U.S., and one-fourth of all new or expanded investment mandates this year, according to the 2012 Consultant Search Forecast conducted by eVestment Alliance, a global provider of institutional investment data intelligence and analytic solutions, and Casey, Quirk & Associates, a leading management consulting firm serving the global asset management industry.|
Four themes will power investor search activity in 2012, the consultant survey indicates -- generating steady income in a low interest rate environment, globalization, alternatives becoming core positions in portfolios, and the shift to liability-driven investing by corporate pension plans.
This year’s survey polled 30 investment consultants representing $9.7 trillion in assets under advisement. In 2011, the respondents conducted nearly 5,000 searches and placed a total of $370 billion in mandates
Additional results from the 6th annual survey include:
“As hedge funds continue to dominate news headlines, we are not surprised that many of the significant findings from this year’s survey were focused on alternative investments,” said Vice President of New Product Innovation Benjamin Olmstead. “We conduct this survey each year with Casey Quirk in order to provide a window for investors to get a clear sense of what the top issues on consultants’ minds are for the year ahead. Being able to forecast the trends on the horizon is even more valuable with today’s volatility.”
“This year’s consultant survey indicates asset owners and gatekeepers are making increasing demands from asset managers,’’ said Ben Phillips, partner at Casey Quirk. “Investment managers failing to adapt to the changing investment framework will suffer from slower growth.’’