State Street this week released the findings of a new vision paper which indicated a renewed focus on liquidity and risk management among asset owners.
The 'Asset Owners' Perspective: Evolving Investment and Operational Models' report found that many institutional investors are reconsidering their asset allocation strategies in response to increasingly volatile global financial markets.
"Many asset owners are now placing liquidity high among priorities for asset allocation decisions and re-evaluating their liquidity management approach," said Dan Farley of State Street Global Advisors' investment solutions group.
"This has led to the adoption of new asset allocation frameworks that focus on optimising the trade-off between risk and return based on the unique characteristics of each portfolio," he added.
The report also found that 84 per cent of respondents still consider endowment a "highly effective framework," and that 45 per cent of asset owners recorded that low yields on traditional assets have increased their "appetite for alternatives."
