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Alternative Market Briefing

Institutional investors optimistic about investing in 2024 despite challenges

Thursday, March 28, 2024

Bailey McCann, Opalesque New York:

Institutional investors are expecting a generally good year for investment performance despite economic uncertainty and somewhat uneven asset class performance, according to Commonfund's annual investor survey.

The survey includes responses of over 300 investors representing over $890 billion in assets.

77% of investors in the survey expect that the US Federal Reserve will engineer a soft landing for the domestic economy. When asked about expectations for U.S. stock market returns in 2024, 45% of investors believe this year's returns will be "about the same," about a 20-point increase from 2023 when 22 percent of investors shared that view. 35% of investors expect returns will be lower than average, a decrease from last year's 67%.

"With the impending U.S. election and ever-shifting geopolitical environment, this will be a pivotal year that investors are, understandably, closely watching. It is promising that investors increasingly anticipate about the same or even higher than average stock market returns, a continued trend upward since 2022," said Mark Anson, CEO and CIO of Commonfund.

When considering their own organizations, over half surveyed were "cautiously optimistic" about achieving target returns over the next ten years. Additionally, across public equities, investment grade fixed income, real estate and private credit asset classes, the majority of investors are planning to keep their allocations the sa......................

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