- Advertisement -
- Advertisement -

Insourcing Trend to Decelerate

Report: Systematic Strategies

- 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

Indecap-PriorNilsson Deal Gets Regulatory Nod

Stockholm (HedgeNordic) – The Swedish Financial Supervisory Authority, Finansinspektionen, has granted approval for Indecap’s acquisition of fund boutique PriorNilsson Fonder. This strategic collaboration will...

Tidan Rides High on Normalized Market Conditions

Stockholm (HedgeNordic) – Tidan Fund, a hedge fund focused on capturing capital structure opportunities, is approaching its third anniversary this October with strong momentum....

Month in Review – August 2024

Stockholm (HedgeNordic) – Nordic hedge funds delivered solid performance during the roller-coaster month of August, with fixed-income-focused hedge funds leading the charge. The Nordic...

Danske Bank’s Multi-Asset Hedge Funds Gain Momentum

Stockholm (HedgeNordic) – In August 2022, Danske Bank Asset Management launched a hedge fund designed to capture ‘true’ alternative risk premia as compensation for...

Inspired by AP7, Carnegie Launches Leveraged Global Equity Fund

Stockholm (HedgeNordic) – As Carnegie Credit Edge comes to a close, Emil Nordström, who managed the fund’s derivatives strategy, is now steering a new...

Mandatum’s CTA Defies Trend in Tough August for Trend-Followers

Stockholm (HedgeNordic) – Trend-following managers had a tough time navigating markets in August, as evidenced by the 4.5 percent decline in the SG Trend...

Allocator Interviews

In-Depth: Commodities

Voices

Request for Proposal

- Advertisement -