Pension & Investments, speaking to asset managers, discovered the internal investment staff of defined benefit and defined contribution plans are increasingly turning to investment management outsourcing following the financial market turmoil this year.
Most often the reason cited to engage outside help in managing plan assets is ongoing uncertainty in financial markets and concerns about meeting return objectives.
Over the five-year period that ended March 31, 2020, the combination of full and partial investment outsourcing has grown 51% worldwide. Following the pandemic, asset managers anticipate the trend will accelerate.
*Source: Pensions & Investments.