By Hedge Fund Insight staff
Murano Connect, a leading financial services company that matches fund managers to allocators, today unveiled asset allocators’ top fears through its quarterly Allocator Insights Report (AIR). The biggest concern for allocators in 2019 is government and geopolitical issues, with U.S. policy-making playing a big factor.
“There are a lot of fears and concerns regarding financial stability, which is exacerbated by the volatile political climate,” said Ole Rollag, CEO of Murano Connect. “This economic uncertainty will only increase in 2019, creating a unique opportunity for alternative investments as allocators are seeking new opportunities. Murano can guide them to fund managers who share similar goals and investment strategies.”
Murano surveyed 100 asset allocators in North America (63 percent), Europe (21 percent), Asia (12 percent) and the rest of the world (4 percent) to determine the biggest fears for 2019. Here are the key areas of concern from the AIR findings:
- Geopolitical Issues – Nearly half (44 percent) of allocators see government and political issues creating the biggest source of uncertainty in the financial markets.
- Global Downturn – More than a third (31 percent) of those surveyed fear that the current economic cycle is coming to an end and that there will be a subsequent global downturn.
- U.S. vs. EU Political Climate – More than a quarter (26 percent) are concerned about the U.S. policy-making, as opposed to 14 percent who are worried about European political issues. Surprisingly, only nine percent fear the UK leaving the European Union (Brexit).
- Quantitative Easing to Tightening – One in four (25 percent) allocators fear banks will be reducing liquidity and contracting monetary policies, followed by rising interest rates and an increase in volatility in the markets.
- Slow Growth Environment – Nearly a quarter (24 percent) of institutional investors cited a slower global growth environment as a challenge in 2019. Allocators believe that global growth will slow in 2019, but only 6 percent think a global recession is a possibility.
Murano connects funds and investors. Murano provides fund managers with real-time insights from institutional investors, including large banks, pension funds, funds of funds and family offices. Murano has briefings with asset allocators each week to determine their interests, concerns and criteria for investments. These investor insights are distributed through Murano’s weekly reports, providing asset managers a competitive edge to differentiate themselves in the market. Murano’s asset allocator network has expanded to more than 34,000. Murano meets with 400-600 allocators each year and these relationships spur more than 50 investor meetings with fund managers that lead to at least 2-3 investment allocations a year for each client. Unlike 3rd party marketers, Murano has no economic interest with fund managers and unlike capital introduction teams, Murano’s bespoke service only works with funds based solely on their investment merits. Fund managers pay a subscription fee, but allocators pay nothing. To learn more, please visit www.muranoconnect.com.