FYI: Allocators are putting more money in emerging market equities, which they see as ripe for opportunity.
In a survey of 200 asset owners late last summer — ahead of equity markets’ fourth quarter free fall — 81 percent predicted that stock volatility would increase “substantially” over the next 12 months.
As a result, roughly half believed that returns from equity market indexes would be substantially lower in the coming year, according to a new report from State Street Global Advisors, which partnered with Institutional Investor to conduct the survey.
According to the report — the second of two based on the survey findings — pension funds, endowments, foundations, and other asset owners are now turning to emerging markets in search of returns. Eighty-four percent said their funds would benefit from higher exposures to the asset class, which was seen as relatively cheaper compared to stock markets in the U.S. and other developing markets.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1fb2h1qgpcmq7/Institutional-Investors-Are-All-in-on-Emerging-Markets
