Widespread changes are heralded by the introduction of the euro, according to a Goldman Sachs International/Watson Wyatt Worldwide survey of European economic and monetary union attitudes of about 100 European pension funds and money managers.
Among the key findings:
* Two-thirds of pension funds and 74% of money managers said the euro will prompt them to reconsider their asset allocation.
* Pension funds said they are likely to stick with existing benchmarks. Thirty percent said they will change the benchmark for nondomestic European bonds; 29% said they would change the benchmark for nondomestic European equities. Nearly half of that level said they would alter benchmarks for domestic bonds and equities.
* Money managers are more likely to change their benchmarks, with 59% saying they will change for nondomestic European bonds and 65% for nondomestic European equities. Only one-third said they would change benchmarks for domestic bonds and stocks.
* Country weightings will become less important. Place of a "Euroland" stock's listing will be important to only 51% of pension funds and 34% of money managers.
* Only 36% of pension funds believe it would be more difficult to compare past performance of European assets post-EMU.
* Financial and energy stocks are most likely to be pan-European, followed by capital goods and basic industries, managers said.
* Creation of a euro zone will boost the allure of "Euroland" stocks, said 93% of pension funds and 67% of managers. Slightly lower responses were given for "Euroland" bonds.
* Only one-fifth of investors are worried EMU will limit diversification opportunities.
