Multi-asset class and alternative investments, particularly unleveraged absolute return funds will attract the highest inflows in Europe over the next few years, according to a survey which also reported groundswell support for more shareholder engagement. About 80 per cent of respondents in the second annual survey on the future of the pensions and investment industry by Penrose Financial, believe that multi-strategy and specialist boutique managers would be successful, while less than 10 per cent believed traditional long-only and passive investment providers would flourish.
The survey, which covered product and general investment issues, found that nearly two thirds of respondents believe that greater expectation from clients would compel funds managers to increase levels of shareholder engagement.
This follows the recent publication of the UK Stewardship Code by the Financial Reporting Council, urging large shareholders to actively monitor companies and seek corporate change.
The survey also found that 44 per cent of respondents believe environmental factors posed a significant risk to portfolios and should be a key consideration when making investment decisions.
One in four felt that environmental factors should be incorporated into investment strategies due to significant opportunities within the sector and potential for outperformance.
The survey covered more than 100 senior figures at pension funds, consultants and funds managers.