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Laxman Pai, Opalesque Asia:

The world's large institutional investors and other investment funds - pension schemes, endowments, insurance firms and so on - are apprehensive about market prospects for 2020, despite record highs in major market indexes around the world.

Almost half of the institutional investors expect another global financial crisis to occur within three years and think the stock market is due a correction in 2020, said an annual survey run by the French asset management house Natixis Investment Managers of 500 funds worth a collective $15tn.

The survey revealed that nearly three-quarters (73%) of respondents expect current trade disputes to dampen investment performance in 2020, while 67% anticipate slowing global growth to hurt returns. More than half (59%) believe a hard Brexit will hamper performance.

76% believe that persistently low rates have led to asset bubbles; yet, with rates so low for so long, more than half (54%) worry that central banks do not have the tools they need at their disposal to manage through any new market challenges.

89% are concerned that the explosion of public debt - a game-stopper for many past economic expansions - will have negative consequences for global financial security.

Overall, more than half of institutional investors (58%) believe the next global financial crisis will occur within one to three years.

Alternative paths to growth

Natixis found most institutions have turned to the private ......................

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