European Pension Fund Providers Eye New Asset Classes – Report

In the results of its New Sources of Return Survey 2004, JPMorgan Fleming has found that many European institutions have a strong desire to match assets to liabilities, and that the trend of relative performance which has gripped the institutional industry for so long is clearly in decline. And with European institutions expecting average returns of 6 per cent in the short to medium term, the survey has found that institutions are positive about exploring new asset classes in order to achieve the high returns required in the future. Key findings show that one in three institutions is looking to change its approach to asset allocation, principally to adopt an active overlay strategy. Institutions say inefficient market sectors such as Asia, Japan and emerging markets are expected to offer the greatest scope for outperformance against market returns. The survey polled almost 200 European (non UK) pension fund providers.


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