- Advertisement -
- Advertisement -

Insourcing Trend to Decelerate

- Advertisement -

Stockholm (HedgeNordic) – Large institutional investors have been insourcing asset management in recent years in an attempt to enhance returns by reducing costs. Nordic institutional investors have shifted more assets to internal management, but this “insourcing” trend will decelerate as some strategies can be more difficult to implement and bring in-house, Viggo Johansen (pictured), Head of Nordics at Natixis Global Asset Management, tells AMWatch.

Insourcing asset management has the potential to reduce costs for large institutional investors, particularly for less complex strategies. “While I expect this trend to continue, it will begin to slow down a bit,” Johansen tells AMWatch. “In general, equity strategies that replicate their benchmarks have increasingly turned in-house, but there is still a strong demand for actively-managed global equity strategies with an objective to outperform the market.”

According to Johansen, who is responsible for the Paris-headquartered asset manager’s Nordic client base, institutional investors will continue to outsource the more difficult and sophisticated investment strategies in the alternatives space. “Several asset classes in the alternatives space continue to be difficult to insource as their development requires a lot of resources or technical skill,” says Johansen. “These range from parts of private equity and hedge funds to Commodity Trading Advisors (CTA) strategies.”

Speaking of the strategies currently receiving the highest attention and demand in the Nordics, Johansen says that “in long-only, we see strong demand for strategies far away from the Nordics, such as US and global fixed income and equities.” He also expects “emerging markets equities to play a more significant role in the future.” Last but not least, alternatives such as real estate, infrastructure, private debt and hedge funds remain a focus area for investors.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

First Non-Swedish Family Office Investment for Protean Small Cap

Stockholm (HedgeNordic) – About one year after the successful launch of their long/short equity fund Protean Select, Pontus Dackmo and Carl Gustafsson introduced a...

Atlant Högräntefond Leads Peers on Third Anniversary

Stockholm (HedgeNordic) – Around mid-March 2021, Swedish hedge fund boutique Atlant Fonder launched a UCITS-structured fixed-income fund investing in Nordic corporate bonds, drawing from...

Rhenman Welcomes Brummer & Partners Sales Veteran

Stockholm (HedgeNordic) – After close to 18 years as an institutional sales professional at Brummer & Partners, Tom Josephson is set to join healthcare-focused...

Untapped Potential in Symmetry’s Small-Cap Portfolio

Stockholm (HedgeNordic) – Small-cap-focused hedge fund Symmetry Invest has achieved an annualized return of around 20 percent over the past five years and over...

Navigating Asia-Pacific’s Transition to Sustainable Growth

Stockholm (HedgeNordic) – Emerging markets in the Asia-Pacific region, such as China, India, Indonesia, the Philippines, Thailand and Vietnam, have experienced significant economic expansion...

The Performance of US Equities in Election Years Over the Last Century

By Daniel Ung, Kartik Chawla, and Jędrzej Miklaszewski – SPDR: The 2024 US presidential election is on the horizon, and investors are keen to...

Allocator Interviews

Latest Articles

In-Depth: Emerging Markets

Voices

Request for Proposal

- Advertisement -