{"id":39565,"date":"2015-01-21T02:50:11","date_gmt":"2015-01-21T01:50:11","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/stocks-look-strongest-in-2015-institutional-investors-say-in-worldwide-study-by-natixis-global-asset-management\/"},"modified":"2015-01-21T02:50:11","modified_gmt":"2015-01-21T01:50:11","slug":"stocks-look-strongest-in-2015-institutional-investors-say-in-worldwide-study-by-natixis-global-asset-management","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/stocks-look-strongest-in-2015-institutional-investors-say-in-worldwide-study-by-natixis-global-asset-management\/","title":{"rendered":"Stocks Look Strongest in 2015, Institutional Investors Say in Worldwide Study by Natixis Global Asset Management"},"content":{"rendered":"<p>These investors, who oversee pensions, endowments and sovereign<br \/>\nwealth funds, plan to be careful in their allocations next year, however, favoring<br \/>\nincome-producing investments over riskier assets.<\/p>\n<p>Forty-six percent of institutional investors surveyed say stocks will be the strongest<br \/>\nasset category next year, with U.S. equities standing above those from other<br \/>\nregions. Another 28 percent identify alternative assets as top performers, with<br \/>\nprivate equity leading the way in that category. Only 13% predict bonds will be<br \/>\nbest, followed by real estate (7%), energy (3%) and cash (2%).<\/p>\n<p>Natixis solicited the market outlook opinions of 642 investors at institutions that<br \/>\nmanage a collective $31 trillion. The survey found:<\/p>\n<ul>\n<li> <strong>Realistic expectations of returns:<\/strong> On average, institutions believe they can<br \/>\nrealistically earn yearly returns of 6.9 percent after inflation. In separate surveys<br \/>\nby Natixis earlier this year, financial advisors globally said their clients could<br \/>\nanticipate earning 5.6 percent after inflation[[Natixis Global Asset Management released its Global Survey of Individual Investors in May of 2014. Natixis\u2019 2014<br \/>\nIndividual Investor Research study is based on fieldwork conducted in 14 countries throughout the Americas, Europe,<br \/>\nAsia and the Middle East with 5,950 investors having assets of 200K+ (USD).<br \/>\n]]\n and individuals said they had to earn<br \/>\nreturns of 9 percent after inflation to meet their needs[[Natixis Global Asset Management, released its Global Survey of Financial Advisors in September of 2014 based the<br \/>\nresponses of 1,800 financial advisors internationally.]].<\/li>\n<\/ul>\n<ul>\n<li> <strong>Geopolitics leads potential threats:<\/strong> The top four potential threats to<br \/>\ninvestment performance in the next year are geopolitical events (named by 17% of<br \/>\ninstitutional investors), European economic problems (13%), slower growth in<br \/>\nChina (12%) and rising interest rates (11%). <\/li>\n<\/ul>\n<ul>\n<li> <strong>Focus on non-correlated assets:<\/strong> Just under three-quarters of respondents<br \/>\n(73%) say they will maintain or increase allocations to illiquid investments, and<br \/>\n87% say they will maintain or increase allocations to real estate. Nearly half (49%)<br \/>\nbelieve it is essential for institutions to invest in alternatives in order to outperform<br \/>\nthe broad markets.<\/li>\n<\/ul>\n<ul>\n<li> <strong>Words of advice for retail investors:<\/strong> Among the top investment guidance<br \/>\ninstitutions have for individuals in the next 12 months: avoid emotional decisions.<\/li>\n<\/ul>\n<p><em>\u201cInstitutional investors have an enormous fiduciary responsibility to fund current<br \/>\ngoals and meet future obligations,\u201d<\/em> said John Hailer, president and chief executive<br \/>\nofficer for Natixis Global Asset Management in the Americas and Asia. <em>\u201cThe current<br \/>\nmarket environment makes it difficult for institutions to earn the returns that are<br \/>\nnecessary to fulfill both short-term and future responsibilities. Building a durable<br \/>\nportfolio with the proper risk management strategies can help investors strike a<br \/>\nbalance between pursuing long-term growth and minimizing losses from volatility.\u201d <\/em><\/p>\n<h2>Rising rates, a manageable challenge<\/h2>\n<p>Institutional investors are confident in their own prospects in the face of markets<br \/>\nthat will feature higher interest rates and lower growth. Eighty-seven percent think<br \/>\nthey\u2019ll ultimately be able to meet their long-term liabilities.<br \/>\nIn addition, the survey found that:<\/p>\n<ul>\n<li> 67 percent of institutional investors foresee difficulties in the next three years<br \/>\nbecause of climbing interest rates.<\/li>\n<\/ul>\n<ul>\n<li> In order to counteract higher rates, 61 percent of institutional investors plan to<br \/>\nposition their portfolio to move from long to shorter duration bonds. Less than half<br \/>\n(46%) say they\u2019d reduce exposure to bonds. And while most institutional investors<br \/>\nuse alternatives as an important part of their portfolio construction, more than a<br \/>\nthird (36%) would increase their allocation to alternative strategies to combat<br \/>\nrising rates.  <\/li>\n<\/ul>\n<h2>Investment advice from the pros<\/h2>\n<p><em>\u201cInstitutional investors have an unusually good perspective about markets and<br \/>\nlong-term prospects,\u201d<\/em> Hailer said. <em>\u201cLike ordinary investors, institutions have shortterm<br \/>\nworries. They also feel the pressure to take care of current needs, no matter<br \/>\nwhat the markets are doing. Because of their longer-term time horizon, they offer<br \/>\nvaluable perspective.\u201d<\/em><\/p>\n<p>Asked what advice they could provide to average individual investors, institutional<br \/>\nmanagers say they should:<\/p>\n<ul>\n<li> Avoid making emotional decisions about finances: 84%<\/li>\n<li> Use alternative investing strategies \u2013 including hedge funds, long-short funds<br \/>\nand other options: 76%<\/li>\n<li> Set a return target based on personal goals rather than market benchmarks:<br \/>\n62%<\/li>\n<li> Think about risk first, rather than return, when putting together a portfolio:<br \/>\n61%<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Institutional investors from around the world expect stocks to be the bestperforming<br \/>\nassets in 2015, according to a survey by Natixis Global Asset<br \/>\nManagement.<\/p>\n","protected":false},"author":20,"featured_media":39563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1655,1651,1437,1724,2091,1680],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/39565"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=39565"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/39565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/39563"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=39565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=39565"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=39565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}