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RISING TO THE CHALLENGE OF A DYNAMIC MARKET

Institutional investors respond to uncertainty in 2022

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THE BIG PICTURE

Institutional investors worldwide are proving to be resilient and quick to adapt in a landscape shaped by rising inflation and interest rates, geopolitical uncertainty, and stress in commodities markets.

According to a survey of 758 global investment decision makers conducted by Institutional Investor, when faced with these challenges, asset managers and asset allocators have turned to an investment vehicle that has offered flexibility to pursue their needs in a wide variety of scenarios.
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EXPLORE KEY FINDINGS​

Institutional investors worldwide are proving to be resilient and quick to adapt in a landscape shaped by rising inflation and interest rates, ongoing conflict in Eastern Europe, widespread divestment from Russia, and chaos in commodities markets.

When faced with these challenges, asset managers and asset allocators have turned to an investment vehicle that has flexibility to pursue their needs in a wide variety of scenarios.
39%
of institutional investor respondents are likely to increase use of ETFs over the next 18 months

As they pursue their goals, institutional investors say they are more likely to increase their use of ETFs than of any other investment vehicle during the next 18 months.

51%
cite liquidity as a key attribute for using of fixed income ETFs

For successive years, institutions increased use of fixed income ETFs to source, price, and transact in cash bonds. Bond ETFs can provide precise, liquid, and low-cost access to markets when it's needed most.

40%
of institutional investors are likely to move toward lower overall risk

Across the board, investors are weighing risk and opportunity. 41% lean toward repositioning with greater overall risk in their portfolios and 40% are likely to move toward lower overall risk.

Source: Usage figures comes from a global survey of institutional investment decision makers at insurers, endowments, family offices, foundations, pensions, and asset management firms surveyed in Q1, 2022. This study was sponsored by BlackRock. BlackRock is not affiliated with Institutional Investor or any of their affiliates.

CONCLUSION​

With ETFs playing so large a role in the portfolios of North American institutional investors, expectations run high for ETF providers. Investors have thousands of choices among ETFs, and when they decide to go with a particular one, institutional users of ETFs look to providers for support and expertise. ​

Taking into consideration the myriad ways they use ETFs and the high expectations they have of providers, institutional investors globally rate iShares by BlackRock a preferred provider of ETFs.
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