The annual Chief Investment Officer Sentiment Survey, conducted by www.top1000funds.com and Casey Quirk, a practice of Deloitte Consulting, has revealed a global asset owner community that is less tolerant of risk and more interested in negotiating fees.
Overwhelmingly, asset owners are looking to infrastructure and other real assets in their asset allocation, with 41.2 percent of respondents intending to allocate to that asset class, this was followed closely by private equity and venture capital, where a third of respondents are looking at allocating more.
Respondents were also concerned about geopolitical risks and the impact on economic stability affecting their ability to meet their commitments. Specifically, China tensions and U.S. politics were identified as the top geopolitical risks in the year ahead.
Across the entire respondent universe, the investors had an average return target of 4.4 percent. This ranged from 7.75 percent to as low as 1.2 percent.
Confidence in meeting targets this year was muted. Less than half of respondents (44 percent) were confident of meeting their return target. Confidence in achieving targets has fallen quite significantly over the last year, as 57 percent of respondents in the 2018 survey were confident in achieving their return targets. That’s a fall of 23 percent for the year.
This year, survey respondents totaled 77 CIOs with $2.3 trillion in combined assets across 11 countries.
To read more about the results, click here.
