01/10/2020
UK Institutional Market Study: influential RiF study continues, with Wave 6 of the annual quantitative survey kicking off in October 2020
As part of the most recent UK Institutional Market Study Wave 5 research, fieldwork conducted at the end of 2019, we asked about appeal towards a variety of asset classes. Consultants and professional trustees were asked how their recommended allocation had changed in the previous 12 months, and schemes managers and trustees were asked whether their allocation had shifted for the asset classes over the same period.
Nearly half of the schemes and consultants surveyed stated that they had increased their allocation/ recommended allocation to LDI in the last 12 months, with fixed income and infrastructure also proving popular. ESG/ sustainable strategies continue to see strong appeal, with 56% stating that they had increased allocation or recommended allocation here throughout 2019. Meanwhile, equity allocations have shrunk, with half of those surveyed affirming they had moved away from this asset class.
With Wave 6 fieldwork scheduled to begin in October 2020, Research in Finance is eager to see how appetite for all asset classes and strategies has shifted in light of Covid-19, and its impact on the institutional market and wider economy. Will pension schemes have considered investing more in equities in the search for returns, or will they be holding firm to a long-term investment strategy? What are the differences between DB and DC schemes in terms of actioned investment strategy?
UKIMS also asks pension schemes and consultants their anticipated changes to allocation/recommend allocation to asset classes too, and with previous waves of data to trend back to, this will give further insight into how this market is thinking and what the future may look like.
This influential institutional study also asks pertinent questions about effective investment manager communications, what specific types of communication have been most appreciated this year given face-to-face meetings and events have not been possible, as well as how schemes are engaging with ESG issues and what they are doing to address recent regulation, amongst other topics.
If you are an investment manager interested in signing up to UKIMS, please get in touch with Richard Ley or Toby Finden-Crofts.
If you are a consultant, professional trustee, trustee or involved in some way at a pension scheme and would like to take part in the study, please join our panel here or contact Jack Dominy.
