Key investment trends for 2009 predicted

Mercer’s investment consulting business has identified six key investment themes for 2009 to help institutional investors steer a path through the current capital market storm.

Tuesday, December 23rd 2008, 8:25AM

While the trends have a bias towards the institutional market, retail investors and advisers will also find them useful. The key predictions made are:

1) A focus on capturing opportunistic beta will emerge in the medium term

2) Active managers will continue to be important in adding value to investors’ portfolios

3) Investors will become more active in managing medium-term opportunities through portfolio tilts to long-term strategic asset allocations

4) The hedge fund universe will see a dramatic contraction

5) There will be an increased focus on operational risks in fund managers, custodians and security lending programs

6) Trustee boards and other fiduciaries will need to ensure their governance arrangements are structured to facilitate timely well-informed decision-making.

Head of Mercer’s investment consulting business in Australia and New Zealand, Simon Eagleton, discusses these six trends in the Good Returns' Features section here
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