Institutional investors in continental Europe are using more external managers to run their assets, according to a Greenwich Associates study.
Overall, the average number of managers used for segregated accounts per institutional investor across the Continent rose to 5.7 in 2001, up from 5.2 in 2000. Increases were particularly large in Spain (to 5.1 from 3), Switzerland (to 7.4 from 6.3) and Italy (to 3.8 from 2.8). Among all continental European plan sponsors, 42% plan to hire additional external managers in 2002, according to the report. Specialty mandates are becoming more popular, with demand rising to 38% in 2001 from 33% in 2000.
Increased marketing efforts by international investment firms have contributed to the increases, the study showed. The average European institution received 12 new proposals from investment managers in 2001. Solicitation activity was particularly high in the Nordic countries (an average of 16 solicitations reported per institution in 2001) and France and Switzerland, where institutions reported an average of 12 solicitations.