A flippant, fearless, and fundamental countdown of big money investing.

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#1 Outcomes

The Allocator’s Dilemma

 Asset management has a problem. 

Regardless of the fund type allocators work for, where they are located, or their level of seniority, the data are consistent: their required long-term rate of return surpasses what they personally believe they can achieve.

The future of the industry hinges upon closing this gap. If allocators and asset managers can do so, the mission’s success (and generous compensation for some) will be their reward. If they fail, corporations will falter, taxes will rise, schools will under-invest, and health care systems will crumble. The stakes are high—but by Chief Investment Officer’s 100th issue (likely sometime in 2023), we hope that the concern depicted in these charts will have been proven unfounded.

Methodology: From May 26 through June 3, 2016, 162 global asset owners provided both their “long-term expected/assumed rate of return” and their “best guess at what [their] portfolio will actually return over that timeframe.” Median figures appear in the charts.

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