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Laxman Pai, Opalesque Asia:

U.S. institutional investors representing more than $12 trillion in AUM in a recent survey said they anticipate downward pressure on their ability to outperform against their return targets and only half of them expressed confidence that they would meet their expected target rate of return over the next three years.

According to results of a survey conducted by Fidelity Investments, only 54% of the 500 institutional investors surveyed said they are confident despite respondents on average nearly doubling their expected required rate of return in 2020 - 12.3% actual vs. 6.3% required.

When institutional investors were asked about challenges they are experiencing, 40% said it is yield generation, being forced to take on more risk for the same level of return. Thirty-nine percent confirmed that they are taking on more total risk in their portfolios than three years ago, and 37% said they are not comfortable with the total level of risk in their portfolios.

The majority of institutional investors in the study placed themselves in the middle as either Early Majority (33%) or Late Majority (31%). However, an analysis of segments at the "tails" of this curve, made up of Innovators (5%) and Early Adopters (18%) at one end and Laggards (13%) at the other, demonstrates how widely investment and decision-making approaches can differ depending on an organization's orientation around innovation, even among institutions of similar types and sizes.......................

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