Survey: Emerging Markets Returns To Drop

Jan 13 2006 | 9:03pm ET

Emerging market equity investment returns will see "a particularly sharp decline" in 2006, according to Mercer Investment Consulting's annual Fearless Forecast survey.

The survey, which polled 157 investment firms, predicts that emerging market investment returns will be approximately 9% this year, which is significantly lower that the 34% returns shown by the MSCI Emerging Markets Index in 2005.

Overall, the survey predicts that global equity markets will drop nearly 2% to a median 7.6% return in 2006 from 9.5% in 2005.

Among other findings, the majority of managers globally expect pension plans to increase alternative investment allocations by less than 5% this year, though in the U.S., nearly 60% of investment managers expect allocations to alternatives to increase by 5-15% or more.

Also, a "significant portion of managers expect a rise in client demand for integrating consideration of environmental, social and corporate issues into investment decision making over the next three years," although U.S. managers viewed client support for these measures as the "least" prevalent.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note