As equity-market volatility returns to normal levels, institutional investors are considering how they will adapt their strategies to cope with the potential for muted market returns. As noted in “Seeking Opportunity at the Top of the Cycle,” investors are likely to embrace active equity strategies that span a broader universe of potential investments and more diverse sources of data.
Investors are unlikely to move reflexively into active equities. Instead, they will use active equity strategies when —and only when —such strategies are governed by well-informed investment hypotheses. At the same time, investors recognize the promise of more diverse data sources and a growing toolkit of sophisticated analytics, including those fueled by machine learning.
This follow-up report examines how investors view active quantitative strategies as a means to navigate an increasingly turbulent market, and the concerns —both internal and external —investors have about using new investment methods supported by expansive sources of information and the next generation of analytical technology.
In survey responses and interviews, investment decision makers at asset-owning institutions such as pensions, insurers, foundations and endowments in North America and Europe revealed what they expect from equity markets in the year ahead, and what they desire in strategies as a result. The following fivekey insights emerged from the research:
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All text and content of this research report are the exclusive property of Institutional Investor LLC. The research and commentary in this document are intended to highlight results, trends, and patterns among respondents in this study. In no event should the content of this reportbe construedto constitute an investment recommendation or managerial advice from Institutional Investor or State Street Global Advisors, which commissioned this study.
The views and opinions of the respondents are not necessarily those of State Street Global Advisors. Views and opinions are subject to change at any time based on market and other conditions.
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Expiration Date: 8/31/2020