Less than One-Third of Investors Worldwide Deterred from Allocating Funds to the U.S. Due to Political Climate, According to Murano Connect Allocator Insights Report
NEW YORK--(BUSINESS WIRE)--Feb 28, 2019--Murano Connect, a leading financial services company that matches fund managers to allocators, today unveiled data on the reactions of investors to the U.S. political issues through its monthly Allocator Insights Report (AIR). More than half (54 percent) of asset allocators around the world are undeterred from investing in the U.S., despite a volatile political climate.
“The fact remains that the global economy has never been free from political issues and yet investors manage to earn positive yield,” said Ole Rollag, CEO of Murano Connect. “It is difficult to ignore the economy that takes up the largest stake of global indicators, but our clients continue to flourish even during these times of political uncertainty. To some, volatility is just another word for opportunity.”
Murano surveyed more than 100 asset allocators in Europe (42 percent), North America (24 percent), UK (18 percent), Asia (7 percent) and the rest of the world (9 percent) to determine the biggest fears for 2019. Investors from all areas of financial services were polled, including wealth managers (34 percent), family offices (15 percent), financial consultants/advisors (14 percent), Fund of funds (7 percent), banks (6 percent), pension funds (6 percent) and the remaining 18 percent made up of private banks, endowments, insurance firms, multi-family office, foundations, government agencies, trust funds and registered investment advisors. Here are the key findings from the AIR findings:
- Volatility Can Be Good for Business – Nearly one in five (19 percent) perceive market corrections and rising instability as an opportunity for new investments in the U.S. In fact, 15 percent of survey respondents are planning to increase their U.S. investments, stating that the spikes in volatility are deemed short term noise.
- Downside Protection – Almost one-third (29 percent) of asset allocators are negatively impacted by the U.S. political climate. Germany had the strongest reaction to the U.S. with only 25 percent surveyed undeterred from investing in the country.
- Reasons to Avoid the U.S. – The primary reason asset allocators avoided investing in the U.S. was because of the current political climate (48 percent), which was split between the tension between China, and other issues such as the government shutdown, US dollar depreciation and the President’s actions. The secondary reason for not investing in the U.S. was sheer volatility of the U.S. financial economy (29 percent).
- Home Field Favoritism – Not surprisingly, North America was the most favorable for investing in the U.S. with 91 percent of allocators surveyed either undeterred or unconcerned by the political conditions.
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. Allocators do not pay for the firm’s services, the funds do. 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. Murano is the least expensive and most effective way for fund managers to identify qualified investors/allocators.
Murano is changing the way that funds and investors connect. Murano provides fund managers with real-time insights from institutional investors, including large banks, pension funds, funds of funds and family offices. Investors trust Murano to navigate the growing universe of niche mutual funds, hedge funds, equity funds, fixed income funds, alternatives funds and funds of funds to identify those that fit their investment criteria. 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.
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SOURCE: Murano Connect
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PUB: 02/28/2019 08:00 AM/DISC: 02/28/2019 08:01 AM