Institutional investors managing more than $12 trillion in assets are less confident about their ability to outperform against return targets over the next three years, according to a survey by Fidelity.
Only 54% expressed confidence in their ability to do so, the survey found, while 40% say they are being forced to take on more risk to achieve the same level of return. Thirty-nine percent say they are taking on more total risk in their portfolios than three years ago, and 37% say they're not comfortable with the total level of risk in their portfolios.
Institutional investors in the study overall reported an asset allocation of 63.5% to active, 28.9% to cap-weighted passive and 7.6% to non-traditional passive (e.g., factors, non-cap weighted and "smart/strategic beta").
Respondents reported that by 2025, they expect to make additional changes: For active, 31% expect to increase their allocations, 47% expect no change and 22% expect to decrease their allocation. For cap-weighted passive, 23% expect to increase their allocations, 54% expect no change and 23% expect to decrease. For non-traditional passive, 23% expect to increase their allocations, 69% expect no change, and 7% expect to decrease their allocation.
Fidelity surveyed 500 executives, including CEOs, chief investment officers and treasurers, at U.S. institutions, including public and corporate pension plans, insurers, defined-contribution plan sponsors, family offices and sovereign wealth funds.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
