Active asset managers are set to benefit from the current environment of asset price bubble and growing instability, according to three quarter of respondents of a recent survey conducted by Natixis Asset Management.
The survey, conducted among 500 institutional investors revealed that respondents were cautious of inflows into passive funds, which according to 59% of respondents, has artificially reduced volatility, distorted risk/return profiles (57%) and increased systemic risks (63%). An overwhelming 72% of respondents believe that retail investors are not aware of these challenges.
The survey also revealed that investors increasingly respond to these challenges by increasing their exposure to non-traditional asset classes such as private equity, private credit or real estate.
Oliver Bilal, head of International Sales and Marketing at Natixis comments on the results: The management of losses on stock markets will become an even bigger challenge in 2018. On the other hand, one could also consider the new year an opportunity. After all, volatility could be beneficial to those who are able to capitalise on it and it could also lead to higher returns.”