Investment manager hires and terminations data collected by Pensions & Investments in 2018* showed a continuation of 2017 trends, with alternatives managers taking a bigger slice than traditional managers. This year has seen global equities decline 10.4% and volatility return as new geopolitical concerns were coupled with significant natural disasters.
Less movement: About $221 billion in new mandates was allocated in 2018, a 3% decline from the year before. Terminations also slid to $31 billion from $38.2 billion.
Alts dominate: Alternatives took a similar share of manager hires in the year as 2017. They received 62% of the total assets allocated to managers during the year, or $138.3 billion.
Playing favorites: Private equity, real estate and hedge fund managers saw increased interest in 2018, while real asset managers saw fewer allocations.
Tops in hires: BlackRock reigned among its peers in hires this year. Of its $20.5 billion in hires, $12 billion was allocated as a strategic partnership by a single state pension plan.