Deeper Perspectives Archive

Covering pressing issues in the institutional sector

January 2018

CDI emerging as UK DB schemes turn increasingly cashflow negative

In this Deeper Perspectives we explore some of the key themes from our most recent Insights report – UK Defined Benefit 2017.

Currently most schemes finance their negative cashfows through divestment, meaning that they risk having to liquidate their assets in down markets and therefore crystallise losses. Cashflow driven investment is emerging as means of providing income for when they need to pay out their pensioners, while also providing access to growth assets.

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October 2017

APAC institutions to outsource US$12trillion by 2021

In this Deeper Perspectives we explore some of the key themes from our most recent Market Intelligence report, APAC Institutional Client Opportunities - Rising 3Cs: Collaborate, Centralise, Consolidate.  

China, Australia and Japan are the key markets, accounting for over 80% of total addressable assets. However, “domestic addressable” assets—assets invested locally--will still account for the majority (more than 60%) of assets in 2021. 

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July 2017

UK Drawdown’s long road to opportunity

In this issue, we combine our latest research on UK Defined Contribution and UK Retirement Income.

With pension freedoms increasing choice for new retirees in the UK, taking pensions in drawdown is now the most common choice, ahead of annuities. As a result, we have already seen growth in drawdown AUM, and expect this to continue into the future, especially with changing targets for DC workplace schemes.
However, product development within the drawdown range will need to occur to meet the necessary requirements of delivery for the end consumers.

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May 2017

Multi-Asset Funds: A Global Strategic Growth Opportunity

In this issue, we combine our latest research on APAC and European Multi-Asset product markets to highlight why now is the time for US asset managers to deploy their multi-asset allocation capabilities for this global growth opportunity.

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May 2017

It pays to align with APAC’s most influential investors

With over a third of outsourced assets concentrated within the top 10 institutional investors in APAC, it pays for asset managers to focus their efforts on this group. Notwithstanding, their investment habits are often emulated by smaller peers in the region, creating a ripple effect for asset managers who can successfully establish themselves as trusted advisors. 

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May 2017

APAC Asset Management: New ideas, New Regulation, New opportunities

The opening up of the China market for onshore investment product licenses is leading US managers to seek control of full-scale operations on the ground. While retail investors are the operational focus, a key growth segment for foreign managers is institutional. Pensions in particular has huge potential due to the relatively low penetration of Multi-Asset funds. 

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April 2017

APAC multi-asset funds: a trillion dollar opportunity

The vast array of multi-asset funds, coupled with a diverse regulatory landscape and clientele, means knowing your clients and matching their demands with the right products is key to winning assets.

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April 2017

The rise of ESG and Factor-Investing in Euro DC Pensions

Despite the huge diversity in the characteristics of each DC market, factor-investing and the incorporation of ESG considerations within investment policy are emerging as two pervasive trends across European DC pensions. 

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March 2017

A paradigm shift in Insurance Asset Management

In the past, asset managers may have seen selling to insurers as pitching a range of products. In reality, due to the particular demands of insurers, outsourcing is an opportunity for asset managers to be active and help create a bespoke solution, unique to the issues faced by each insurer.

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January 2017

DGFs – new tactical opportunities emerge

In this latest Deeper Perspectives, we look at how new growth in assets for DGF providers will come from new sources, particularly through UK DC schemes as well as non-UK clients. While this creates new tactical opportunities, successful providers will need to be aware of the specific needs of each client group.

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December 2016

2016 trends in Institutional - a year of change

2016 has been a year of change. We have said goodbye to heroes such as David Bowie, and royalty such as Prince, and we have said hello to President-elect Donald Trump and understood that Brexit means Brexit.

In this special edition of Deeper Perspectives we look at three of the major themes prominent in the global institutional asset management business in 2016

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October 2016

LGPS – A changing competitive environment for asset managers

In this latest Deeper Perspectives, we look at local authority pension schemes in more detail. The 89 local authority schemes across England and Wales are in the process of being amalgamated into 6 or more. This means that asset managers will have to adjust to a vastly different competitive environment. 

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October 2016

UK private DB – A changing distribution landscape for third party investment suppliers

As a result of the difficult situation faced by schemes, providers of ‘solutions’ have been the main beneficiaries of the continued growth in private DB assets.  

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September 2016

APAC Institutional opportunity doubles by 2025

In this Deeper Perspectives we explore some findings from our APAC focused Market Intelligence report, APAC Institutional Client Opportunities where strong growth from existing investors and emergence of new investors mean the region could see a close to doubling of addressable assets in the next 10 years. 

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September 2016

Smart Beta: multi factor vs alternative index

Smart beta growth reflects a face-off between more ‘active’ multi-factor strategies and more ‘passive’ alternative index approaches

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June 2016

Asia Pacific institutions – strength in numbers

Partnerships, co-investments and asset pooling on the rise as Asian institutions take a more collaborative approach towards investments

March 2016

Trends in client relationship management: 2008-2015

Responsiveness to queries and requests is the most essential factor for excellent client management in institutional asset management. Institutional clients have placed this as their biggest requirement every year since 2008.

February 2016

Insurance outsourcing growth 6% pa to €1.1trn by 2024

Low interest rates and reduced underwriting margins, along with the long overdue implementation of Solvency II, continue to drive increased outsourcing by European insurance companies

December 2015

Unconstrained Fixed Income: providing yield and rate risk protection

Our Institutional Money in Motion (iMiM) data set shows significant inflows into UFI from corporate treasuries, DB pension funds and insurance companies. This may be the future of fixed income investing in a low yield environment. 

November 2015

The changing UK retirement income market

The changing UK retirement income market

Pension freedoms will continue to drive rapid transformation of the UK retirement income market as it grows from £699bn in 2014 to £1,098bn by 2024. 

November 2015

UK DB Pensions - Winter is Coming

UK DB Pensions - Winter is Coming

Only 13% of schemes are still open, net contributions are falling and the investment needs of DB schemes are fundamentally changing. Asset managers' approach to this market does not need ‘tuning’, it will need to be completely reimagining if they are to be successful.

October 2015

Opportunities in Insurance Asset Management

Insurance Asset Management 

The search for yield in a low interest rate environment and regulatory pressure are factors driving outsourcing opportunities in insurance asset management  

October 2015

Diversified Growth Funds - New players win market share

The DGF market grew 15% to £124bn at the end of 2014. UK DB and DC pension assets represent the key clients for almost all DGF managers, together representing 70%+ of the client base for most funds.

July 2015

Smart Beta - Our fastest growing MI segment

The rapid expansion of the Smart Beta market in 2014 makes it the fastest growing market segment covered by Spence Johnson’s Market Intelligence Service

June 2015

Targeting growth markets in European Institutional

Consultants do well in markets where fragmentation deprives schemes of the economic ability to retain skilled management in house. This skill often resides in large schemes that are common in continental Europe but rare in the UK. 

February 2015

Excellent client management provides tangible added value 2015

In this edition Spence Johnson reveals what it is that makes for excellence in client management.  

February 2014

European Pensions 2014- Opportunities across the map

The UK is hugely fragmented compared to the rest of Europe: it is broken into more than 200,000 pieces.  Assets per scheme in the UK are 450 times smaller than in Denmark. 

January 2015

UK Defined Contribution 2014 -The year of the master trust

As with target date funds, master trusts also offer a less intermediate channel than those for more traditional trust or contract-based schemes, especially in the large scheme sector.

December 2014

Deeper Perspectives 2014 yearbook

Our 2014 Deeper Perspectives yearbook includes our regular analysis of strategic issues in the institutional investment business across our 5 sectors.

November 2014

European Growth Opportunities 2014

The European institutional market is a market going through transformation. As this transformation takes place, we have identified three growth opportunities that US managers could take advantage of.

October 2014

UK Retirement Income 2014-Opportunities in a transformed market

Retirement Income is becoming an investment based fund market. Both the life pensions and asset management sectors are facing major challenges to project and grow their strategic  interests in this £1.7 trillion opportunity.

September 2014

UK Defined Benefit 2014- Solutions for the end game

Since 2002 a wave of ‘tools’ have emerged in UK Defined Benefit (DB), each of which aim to help pensions achieve their goals.  Some of these tools are ‘solutions’ to derisking challenges.  The assets of leading solutions in UK DB has grown between 5 and 10 times in size since 2007.  

May 2014

Diversified Growth Funds 2014 - Still room for new players

The DGF market will grow to £203 billion by 2018.  Much of this growth story is a DB pension one (44%), but the export of DGF strategies abroad has also led to a large influx of assets from non-UK investors. 

April 2014

Smart Beta 2014- The new alternative

Investors increasingly see Smart Beta as an alternative to ‘active’.  Although Smart Beta allocations have in the past been funded out of passive allocations, there is evidence of a clear trend of investors beginning to fund Smart Beta allocations from ‘active’ budgets. 

December 2013

The Three Spirits of Pensions Past, Present & Future 2013

In this holiday edition of  Deeper Perspectives we evoke the Three Spirits of Pensions Past, Present and Future – to enlighten and inspire our readers about the exciting world of pension investment. 

November 2013

The future of UK workplace pensions 2013

In this new edition of  Deeper Perspectives, we make four predictions of the future of workplace pensions that could have a significant impact on your strategic planning today.

Ed 16 October 2013

New opportunities in Insurance Asset Management 2013

This edition of Deeper Perspectives shares some  high level findings of our European Insurance Asset Management Market Intelligence 2013 report and describes growing and changing revenue opportunity for asset managers in the European insurance market.

June 2013 - Number 15

The US Outsourced CIO Market 2013

We share high level findings of our OCIO Market Intelligence report, and we describe one very clear winner emerging in this market.

Our combined services, proprietary datasets and expert team place Spence Johnson at the cutting edge of data analytics and market intelligence in the institutional space

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