By James Comtois
Source: Pensions & Investments
Institutional investors expect headwinds in their ability to outperform return targets, according to results of a survey conducted by Fidelity Investments.
Despite respondents on average nearly doubling their expected required rate of return in 2020 — 12.3% actual vs. 6.3% required — only 54% of the 500 institutional investors Fidelity surveyed said they are confident that they will achieve their expected target rate of return over the next three years.
When asked about challenges they are experiencing, yield generation topped the list, with 40% of institutional investors saying they felt “forced to take on more risk for the same level of return,” according to a news release announcing the annual survey results.