April 8, 2016 Comments Off on Unsettling Investment Environment Forcing Institutional Change Views: 454 California News, Massachusetts, National News, Northeast

Unsettling Investment Environment Forcing Institutional Change

An unsettling global investment environment is forcing change among central banks, sovereign wealth funds (SWFs) and government pensions, according to a recent report from State Street Corp. of Boston, MA. “Official Institutions: Transforming to Meet the Needs of a New World,” noted that official institutions are adapting investment and operating models to be more flexible.

State Street’s global survey quizzed more than 100 official institutions; 77% of surveyed central banks indicated the highest potential impact from rising interest rates. Meanwhile, 90% of SWF and government pension funds indicated that equity market corrections would have a moderate, or significant impact on investment strategies over the next three years.

SWFs and government pension funds are showing strong appetite for alternative investments, with 68% SWFs surveyed likely to increase allocation to commodities, and 88% of surveyed government pensions real estate investments.

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