Workshop #6: Trends in Institutional Asset Allocation - What Advisors Can Learn from Institutions

Monday, February 4, 2013 - 2:00pm to 2:50pm

Session type:

Public pensions are today grappling with how to achieve actuarial returns in a low growth, low interest rate world. Traditional portfolios that rely primarily upon stocks and bonds produced mid-single digit returns over the last decade with uncomfortable levels of volatility. And unfortunately, looking ahead, not much is expected to change with industry return forecasts of 5% to 6% from combined stock and bond allocations, well below the 7.5% to 8.0% actuarial rates for most public pension systems. Our most recent survey of state-wide pension systems uncovers investment trends that potentially address the performance gap and portfolio volatility.

Three Key Take-Aways:

1. Institutions are allocating more toward alternatives.

2. Institutions are reevaluating their strategic asset allocations.

3. Advisors and individual investors can do likewise.