Wednesday, September 28, 2011

Investment Trends since the Credit Crisis

In the IMF's Global Financial Stability report for 2011, they find investment trends since the credit crisis in 2007-2009.  They are:

  • 50% of assets under management (AUM) are in the US;  this is trending down
  • 14% of AUM are in Japan (as of 2009); down from 23% in 1995
  • More AUM are in investment funds (from 29% in 1995 to 40% in 2009); less are in pension funds and insurance companies
  • US investors equity allocation is down 10% to 44%
  • Asset allocations differ by country
  • Generally, investors have pulled out of equity and debt investments
  • Markets such as emerging markets with good long term growth predictions are receiving capital flows
  • The equity allocation is being replaced by long duration debt securities
  • Investors are analyzing the risk profile of their portfolio instead of the individual components

The source for this article is here.

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