About $223 billion was allocated to new mandates in 2017, down from 2016’s $300 billion. Alternatives were in high demand during a relatively quiet year of manager hires.
Hirings by manager type: $223 billion was allocated among alternatives and traditional managers in 2017, with about 60% going to the former and 40% to the latter — almost a reversal from 2016.
Equity vs. debt: Traditional manager hiring volume in 2017 was $65 billion, less than half that of 2016. About $34 billion moved to equity managers, $11 billion to bond funds and the balance to other asset classes.
The leaders: BlackRock (BLK) led hiring volume again in 2017. UBS was the next highest traditional manager, but alternatives managers Blackstone, Apollo and Carlyle all placed in the top five.
OCIO hires grow: Total 2017 hiring among OCIOs and general investment consultants was nearly identical to 2016. General consultants were still the norm for plans looking for outside advisers, but OCIOs took a larger slice of the pie in 2017.
Source: Based on data compiled by P&I as of Dec. 15, and not representative of aggregate industry asset allocations. Dollar values do not include DC plan assets.