OECD/Euromoney Conference on Long-term Investment Financing

Institutional investors face a persistently challenging investment environment. Future return expectations are low while volatility expectations remain elevated. Persistently low growth translates into higher potential contributions and fundraising in order to meet future payments. What can long-term investors do when asset prices are volatile, interest rates are low, and growth is elusive? • What are the most salient trends amongst institutional investors in this challenging investment environment? Much is said about the search for yield, but what about the search for growth? • Given historically low interest rates, what are the policy and asset allocation implications for institutional investors? What about direct lending and credit opportunities? • In the post global financial crisis period, are institutional investors better protected against potential financial shocks? What are investor perceptions of financial risks? • Overall trends in asset allocation indicate a continued increase in so called alternative investments yet some funds are drastically changing some alternatives programs citing high costs and lackluster returns. How can investors optimize allocations to alternative investments and maximize long-term value-add? • Is the regulatory and supervisory framework adequate to address shifting risk profiles of investors that embrace alternative asset allocation models (such as factor investing) and investments? Is the risk of being “different” an impediment to implementing non-traditional asset allocation techniques or asset classes?