Schroders' Global Investor Study (pension fund investors) – Focusing on investment outcomes and ESG issues
A new political and economic landscape is changing investors' priorities and approach. The Schroders Global Investor Study shows that a focus on investment outcome rather than relative return is fuelling a significant rise in multi-asset and smart beta investing.
The Schroders Global Investor Study takes place at a time when financial markets are – potentially – at a turning point, moving from widespread expectation of deflation, to one where inflationary pressures are starting to re-emerge. The ability to beat inflation is increasingly weighing on the minds of institutional investors. This is focusing attention on generating long-term real return, with short-term income and liquidity of relatively low importance. In this respect, the era of relative returns is waning, with investment outcomes now a greater priority. Multi-asset and smart beta options are gaining momentum as a clearer way to achieve these outcomes. The Study also finds that institutional investors are leading the charge on ESG issues, which are becoming a more important factor in investment strategies. Investors are taking a closer look at their investments' ESG impact and becoming willing to sell investments for transgressions.