Investment Innovations: raising the bar
The new CREATE-Research report sponsored by Citi and PGI
Since 1980, some 30 distinct investment innovations have emerged piecemeal at various times. Yet their widespread adoption occurred only in the last decade, due to the heavy losses inflicted by the 2000 - 02 bear market. It sparked a shift from relative to absolute uncorrelated returns; from mainstream to alternatives; from asset investing to liability matching. Despite their varying orientations, they aimed to deliver:
- new asset classes
- new asset allocation techniques
- new risk hedging and return enhancing tools
- new theme funds
- new business models
Their impact has been the subject of the 2011 Citi/PGI/CREATE survey. It involved 108 pension plans 396 asset managers and other service providers with a combined AuM of approximately $29 trillion. The respondents came from 30 countries, representing every significant fund jurisdiction around the world.
To assess their impact, two global surveys have been conducted: of asset management buyers and sellers. These two groups of fund buyers and sellers were asked the following questions:
- which innovations worked, which didn’t and why?
- what improvements are essential?
- what should be the main thrust for innovations over the next three years?
- what specific actions do they call for?
The two surveys attracted respondents in 30 countries, with 108 returns from pension plans and 396 from asset managers, consultants, asset servicers and distributors.
CREATE-Research is an independent think tank specializing in strategic change and the newly emerging business models in global asset management. It undertakes major research assignments from prominent financial institutions and global companies. It works closely with senior decision makers in reputable organizations across Europe and the U.S. Its work is disseminated through high profile reports and events which attract wide attention in the media. Further information can be found at www.create-research.co.uk.