Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. INVESTING
December 05, 2018 12:00 AM

Investors expect bull market to end soon – Natixis

James Comtois
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Institutional investors predict the volatility that hit global markets in the fourth quarter will continue into the new year and expect the U.S. bull market to end soon, a Natixis Investment Managers survey released Wednesday said.

    Among the 500 global institutional investors surveyed, nearly two-thirds — 65% — believe the bull market will end in 2019, while 70% expect the next global financial crisis to hit within the next five years. But even as they expect turbulent times, six out of 10 investors say they feel prepared to handle the risks in 2019.

    "Our research shows institutional investors are already positioned for the potential market turbulence on the horizon," said David Giunta, CEO for the U.S. and Canada at Natixis Investment Managers, in a news release announcing the survey results. "For these sophisticated investors, actively managed strategies and alternative investments are their tools of choice to help optimize their portfolios for the challenges ahead."

    Other findings show 79% of investors believe the current market environment favors active management, and average allocations to active strategies grew to 70% this year, up from 64% in 2015. In addition, 84% of institutions expect more volatility in the stock market, while two-thirds expect to see more volatility within the bond market.

    The survey also found investors see geopolitical disruptions and trade disputes as the biggest potential threats to markets in 2019, with rising interest rates posing the greatest risk to portfolios.

    Institutional investors said their organization's current long-term target return is an average 6.7%, with 77% believing their return assumption to be realistic. More than half (56%) expect to keep their assumed rate of return unchanged in 2019, although 35% plan to lower it, and 9% expect to raise it.

    Investors foresee minimal changes to their portfolio allocations in 2019, reducing their equity allocations to 36% from 38% on average while increasing fixed income to 38% from 37%, and cash to 6% from 5%. They expect no change in their alternatives allocation, at 18%.

    Among the biggest moves within classes, 41% of institutional investors expect to decrease exposure to U.S. equities, while 36% expect to increase exposure to infrastructure.

    Eight in 10 (79%) institutional investors agree the market environment in 2019 likely will favor active management, which is why investors continue to increase their use of active strategies. Current allocations are split 70% active and 30% passive, up from 64% active with 36% passive in 2015.

    Investors regard geopolitics as the biggest threat to performance, with 77% of investors seeing such geopolitical disruptions as North Korea and Brexit as having a negative impact on investment performance in 2019, followed by trade disputes (74%), the unwinding of quantitative easing (65%), interest rate increases (56%) and market volatility (54%).

    The report based on the survey results, "Keep Calm and Invest On," is available on Natixis' website.

    Related Articles
    Investors believe there's still life left in the old bull
    Market cycle still has steam, but it's not forever
    DJIA cross-sectional volatility rises in Q4 as returns fan out
    Fed outlines potential risks for U.S. economy in first financial stability repo…
    Commentary: Valleys of regret — nearly two centuries of market drawdowns
    Asset owners say bull market may soon run out of steam – survey
    Recommended for You
    China stocks
    Global investors take cautious approach to Chinese stocks following the country's reopening
    Calculator
    25% of institutional asset owners considering OCIO in next 24 months – Cerulli
    watchglass stock chart 1550-main_i.jpg
    U.S. insurers likely to increase risk tolerance, private assets – Conning
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    Morningstar Indexes' Annual ESG Risk/Return Analysis
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing