Institutional Investor Asset Management in Low Return / High Risk World
by Dr. Eliot Kalter
Dr. Eliot Kalter’s Presentation to the State Street Middle East client retreat, 26-27 February, 2013
Table of Contents:
I. Global Economic and Financial Environment
– Lower economic growth, larger risks and low returns on “safe”assets
– Deepening opportunities in emerging and frontier markets
II. Institutional Investors’ Broad Move to Diversify Asset Allocation
– Institutional investor AUM growing quickly
– Secular diversification to alternative assets and emerging/frontier markets
III. Drivers for Diversification in the Face of Increased Correlation
– Continuing divergent growth paths for developed and EM countries
– The Search for yield and reduced risks
– Higher absolute returns and lower risk from diversification to broad array of alternative assets, emerging/frontier markets and cash