Gatekeeper Pulse ® CONFRONTING RISK ON THE PATH TO OUTPERFORMANCE
Our latest research explores firsthand insights from billion-dollar decision-makers in fund selection.
Actively Balancing Risks and Rewards
Economic and geopolitical uncertainty continue to foster vigilance among the people responsible for selecting investments for some of the world’s largest financial institutions. Trends in fund selection show cautious optimism marked by heightened demand for diversification and enthusiasm for upside promise associated with megatrends.
Read on for detailed highlights on gatekeeper attitudes, allocation plans, and the issues that matter the most to key decision-makers in fund selection. Research participants include 210 gatekeepers working for global financial firms in Europe and Asia who manage a combined $23 trillion in assets (USD).
Top Trends Among Fund Gatekeepers
Bonds Top Destinations for Money on the Move
- Targeted for increases by half of gatekeepers, public fixed income is poised for the biggest net increase in allocation activity.
- Fixed income is the top pick for increased exposure in general and repurposed cash in particular.
- Not surprisingly, consensus on increased return potential for bonds is highest among asset classes.
Considering the Alternatives
- Two-thirds of gatekeepers believe most of their clients are underinvested in private alts.
- Fund selectors are most drawn to alts for diversification and related aims such as risk management and downside protection. Income generation also ranks high.
- Private equity, private credit and real estate are favoured for those objectives.
After Global Equities, No Place Like Home
- Global equities represent the top gatekeeper priority for new equity allocations, with increases outnumbering decreases five to one.
- Region-specific results reveal a strong home-region bias.
- Forty-four percent of gatekeepers in Europe and two-thirds in Asia plan to boost exposure to their respective domestic markets.
Improving Conditions for Carbon Solutions
- Half of gatekeepers predict the regulatory climate will become more supportive of decarbonisation efforts while also indicating that emissions data from ESG funds is becoming more reliable.
- Fund selectors forecast improved return prospects for climate solutions products at a similar rate.
All About Artificial Intelligence
- Gatekeepers view artificial intelligence to be the top investment theme by a considerable margin.
- Three-quarters of fund selectors expect AI to profoundly impact the global economy, while half foresee AI overtaking the internet in terms of technological significance.
HOT PROPERTIES: ESG AND DATA CENTRES
- ESG-focused opportunities in areas such as affordable housing and renewable energy account for the most intended real estate allocations.
- With lopsided demand more apparent amid AI’s emergence, data centers now rank a very close second in terms of areas targeted for increased exposure.
PRIORITIES SHAPED BY IN-MARKET PERSPECTIVES
Survey responses suggest unique regional preferences between gatekeepers in Europe and Asia.
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