In its 2015 Global Sovereign Asset Management Study, Invesco said “internal vs. external management and active vs. indexing decisions are becoming more important and established sovereigns are citing a shift to external active management.”
The report cites four key issues respondents noted with internal asset management – failure to deliver outperformance, deal availability for alternatives, costs and the inability to attract third-party assets, “which is seen as the ultimate proof of internal asset management capability.”
Not surprisingly, cash and bond portfolios had the highest percentage of internal management among respondents, while alternative asset classes like private equity (28%) and infrastructure (16%) had the lowest.
The company conducted interviews with 59 sovereign wealth funds, government pension funds and central banks globally.
