Cogent Reports: Institutional Investors Reveal Clues for Future Mandates

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Demand for active fixed income is on the rise in the institutional
market, and PIMCO is not the only firm that’s poised to benefit.
Although the fixed income powerhouse leads in consideration for fixed
income among pensions, American Century and Franklin Templeton
Investments are most likely to be considered for active fixed income by
non-profit investors. These and other findings are included in US
Institutional Investor Brandscape®
, a Cogent
Reports™
study by Market Strategies International-Morpace.

US fixed income, both actively and passively managed, continues to be in
demand among pension investors, who are primarily focused on de-risking
their portfolios. Yet interestingly, non-profits express substantial
interest in actively managed US fixed income this year in their effort
to achieve higher yield and capture tactical opportunities. In addition
to fixed income, alternatives are attracting more interest from pensions
this year than in the past, while non-profits report increasing interest
in private equity.

“At a high level, institutional investors are drawn to asset managers
with a history of strong investment performance, a roster of experienced
investment team members and a perception of trustworthiness,” says Linda
York, senior vice president of Market Strategies International-Morpace
and author of the report. “When the opportunity to bid on a new
institutional mandate arises, asset managers can effectively
differentiate by highlighting their unique capabilities, touting
successful aspects of their business, respectfully acknowledging their
competitors and articulating how their own research and investment
offerings are different and a better fit for their clients’ portfolio.”

Firms Most Likely to Be Considered for Specific Asset Classes

 
Among Pension Investors
Active US Fixed Income   Passive US Fixed Income   Alternatives
1. PIMCO 1. BlackRock 1. Oaktree Capital
2. BlackRock 2. iShares 2. Wellington Management
Company
3. Goldman Sachs Asset
Management
3. Vanguard 3 (tie). BMO Global Asset
Management
3 (tie). AQR Capital Management
         
 
Among Non-Profit Investors
Private Equity   Alternatives   Active US Fixed Income
1. Commonfund 1. Blackstone 1. American Century
2. Blackstone 2. Commonfund 2. Franklin Templeton Investments
3. Morgan Stanley Investment
Management
3. Goldman Sachs Asset
Management
3. PIMCO
         

Source: Market Strategies International. Cogent ReportsTM. US
Institutional Investor Brandscape®. February 2019.

About US Institutional Investor Brandscape®

Cogent Reports conducted an online survey from October 12 to November
30, 2018 among a representative cross section of 409 investors managing
an aggregate total of $777 billion. In order to qualify for this study,
survey participants were required to be managing institutional assets of
at least $100 million and playing a direct role in the evaluation and
selection of investments or asset managers within their organization. In
determining the sampling frame for this study, Cogent Reports relied
upon the Standard & Poor’s Money Market Directories (MMD) database of
institutional investors. To ensure the population for this research was
representative of the universe of institutional investors, strict quotas
were established based on a nested classification of institutional
investor category and size of assets. Minimal weighting was applied to
adjust for purposeful deviations from the actual marketplace
distribution. The data have a margin of error of ±4.85% at the 95%
confidence level. Market Strategies-Morpace will supply the exact
wording of any survey questions upon request.

About Market Strategies International-Morpace

Leading market research firms Market
Strategies International
and Morpace
bring clients closer to their customers through exceptional insights,
which includes deep expertise in financial services, specifically among
wealth, banking, payments and insurance organizations. The firms
specialize in brand, customer experience, product development and
segmentation research, and are known for blending primary research with
data from syndicated, benchmarking and self-funded studies to help
clients succeed. The syndicated products, known as Cogent Reports, help
clients understand the market environment, explore industry trends and
monitor their brand within the competitive landscape. Market Strategies
and Morpace have earned the trust of many of the world’s top brands
across the automotive, consumer & retail, energy, financial services,
health, technology and telecommunications industries. They are combining
into one firm, as part of an acquisition of both firms by STG, and will
be rebranded under a new name to be announced in 2019. With more than
450 research professionals, the collective firm is now the 15th largest
market research firm in the US and top 25 globally.

Contacts

Sarah Keller, 734.779.6847
sarah.keller@marketstrategies.com