The effects of globalization are significant to the performance of the capital markets, according to 65% of investment managers surveyed globally, and 62% believe corporate governance is an important issue, according to a survey by Mercer Investment Consulting. Also, 13% of managers surveyed think clients will demand more analysis of environmental, social and corporate governance issues in 2006, while 38% believe demand will rise over the next three years.
Corporate governance, globalization, terrorism and, to a lesser extent, environmental issues are among the factors that respondents believe will continue to play an increasing role in investment decision-making over the next five years, according to the survey. But traditional issues are still considered to more critical, with 72% citing interest rates and 64% citing corporate profits as the most important factors, according to the survey.
The company surveyed 157 investment management firms with a combined $20 trillion in assets under management.