A DWS-sponsored survey from CREATE-Research reports that 66 per cent of pension fund managers see passive investments as a mature part of their portfolio.
The survey found that there is a shift from market capitalisation-weighted indices towards smart beta, factor-based, ESG (environmental, social and governance) and other thematic strategies.
The survey, Passive Investing: reshaping the global investment landscape, conducted by consultants CREATE-Research, came from a survey of over 150 pension plans globally, responsible for approximately EUR2.9 trillion in assets under management.
The report also found that the average pension fund surveyed holds 32 per cent of its investments in passives products or solutions, in the form of either index funds, passive mandates or exchange-traded funds (ETFs).
Amongst passive investors, there is a shift from market capitalisation-weighted indices towards smart beta, factor-based, ESG (environmental, social and governance) and other thematic strategies.
Almost 50 per cent of pension funds plan to increase their passive ESG allocations by more than 5 per cent of assets under management and only 10 per cent of survey respondents expect passive investments to replace active, with the majority expecting both to co-exist in pension portfolios.
Thorsten Michalik, pictured, DWS’s Co-Head of Global Coverage Group and Regional Head of Asset Management, EMEA, says: “Over the last decade we have seen a fundamental reshaping of asset management, with some strategies becoming standardised and made easily accessible at low cost, which means investors today have an unprecedented level of choice to help them meet their asset allocation goals. It is our job at DWS to facilitate that choice and provide market-leading products and solutions for our clients.”