Dukas Linden PR and MHP Election Snap Poll:
Global Investment Industry Bullish on Growth Prospects, but Concerned by Political Climate
NEW YORK and LONDON, November 3, 2016 – Global institutional investors are optimistic that they will improve their performance in the next year, but see the swell of populist sentiment around the world as a risk to future growth. Those are among the key findings in a new snap poll of leading institutional investors conducted jointly by Dukas Linden Public Relations (DLPR) and its strategic partner MHP Communications (MHP), based in New York City and London, respectively.
The respondents, including CEOs and portfolio managers of multi-billion dollar investment firms and research analysts for leading broker-dealers in the US, UK, Europe and Asia, were generally positive about their firms’ performance and growth prospects. Nearly half (47%) of respondents expect their firms to perform better in the year ahead than in the previous 12 months; 39% felt performance would stay the same, while just 14% anticipated lower levels of performance.
However, the rise of populist sentiment is a source of growing concern among global institutional investors. In the poll, 75% of respondents said that they were “somewhat” or “very” concerned about the impact of current anti-trade populist political movements in the US and Europe. Further, when asked to name potential “black swan” events that might disrupt markets in 2017, the most frequent answers were: populist political movements (52%); a significant cyber-attack on the financial system (47%); increased terrorist activity (28%); additional EU departures (27%); and sovereign debt crises (22%).
With the US Presidential election imminent, 43% of the respondents felt that Hillary Clinton is the candidate whose policies would be most beneficial for growth prospects in the US, compared to 18% for Donald Trump.
“Our poll shows that institutional investment managers are optimistic about their prospects for solid performance in the coming year, as they pursue a diverse range of strategies to deliver returns for their clients. Yet this optimism is tempered by concerns that global economic progress may be set back by anti-free trade movements,” said Richard Dukas, Chairman and CEO of Dukas Linden Public Relations.
“As communications advisors to leading global firms in finance, asset management and professional services, Dukas Linden PR and MHP believe that taking the pulse of the industry enables us to provide clients with informed advice about the forces shaping the global markets in which they operate,” added Seth Linden, President of DLPR.
US Economy Seen as World Champion
An overwhelming majority (53%) saw the US as the region most likely to deliver the best economic performance in the next 12 months. Asia (ex-China) and emerging markets (both 14%) were tied in second place, followed by Continental Europe (9%) and China (less than 5%). Reflecting the Brexit vote, fewer than 2% saw the UK as a region likely to perform well, while Dublin and Frankfurt were seen as gaining at the expense of London.
Multi-Strategy Managers Favored; Alternatives Become More Mainstream
When asked which asset management strategies would prove most successful in the next 12 months, multi-strategy (27%) and boutique asset managers (19%) were seen as potentially the best performers. Passive managers came in third (16%), then hedge funds and private equity (11%). Fewer than 10% thought traditional long-only funds would be most successful. As for asset classes, most respondents believe that equities (37%) and alternatives (24%) are the most compelling for investors; real estate (7%), commodities (3%), and fixed income (2%) were the least favored.
Growing Reliance on Digital Information, but Social Media Taking Root Slowly
The poll revealed that digital media was the overwhelming choice of respondents for credible news and information on business and financial markets. The majority (55%) of institutions look to online news outlets as their primary news source; just 19% favor traditional print media and 12% prefer specialist trade publications relating to their particular sector. However, less than 7% turn to social media first for business and financial news.
Dukas Linden Public Relations and MHP surveyed 70 senior figures in the investment sector, across the UK, US, Europe and Asia, prior to October 28, 2016.
About Dukas Linden Public Relations
Founded in 2002, Dukas Linden Public Relations has extensive experience in the asset and wealth management, financial and professional services industries. The communications goals of its clients include general profile raising and brand building through broad media outreach; content development; ongoing reputation and crisis management; strategic thought leadership initiatives; message development; media and presentation coaching; and social media.
DLPR is ranked as one of the industry’s ten largest independently owned financial PR agencies by O’Dwyers, a leading PR trade publication. The New York Observer listed DLPR as one of the “50 Most Powerful PR Firms” in 2015; and in 2014, it was singled out as “Best PR Firm” by HFMWeek, a leading alternative asset management publication.
DLPR’s roster of clients includes multi-billion dollar hedge funds and asset managers, mutual fund and ETF companies, wealth advisory firms, investment banks, well-regarded professional services firms, and fast-growing professional services/B2B companies. Headquartered in New York, DLPR also has offices in the Los Angeles area. Follow @DukasLindenPR on Twitter.
About MHP Communications
MHP Communications (MHP) is a top 10 UK-based strategic communications consultancy with approximately 150 consultants in UK, Germany and Asia. Founded in 2010, MHP provides communications advice and support, tailored to enable clients to meet specific business objectives. Its financial, financial services and professional services practices represent clients across asset management, pensions, insurance, banking and consumer finance, wealth management, private equity, investment trusts, alternative finance and index, corporate finance, research providers and capital markets, M&A and transaction advice for listed companies in all sectors. Its financial services clients’ have aggregate assets under management or advice totaling ?2 trillion.
In addition to its financial practices, MHP’s expertise spans investor, corporate, health and consumer communications, digital services and design, media relations, public affairs advice, employee engagement and internal communications, and CSR and sustainability advice.
MHP is a member of the Engine Group, a global community of 13 best-in-class specialist companies engaged in marketing, content, digital, brand consultancy, research, data analytics, PR, strategic consultancy and advertising. MHP is one of the most awarded communication consultancies in the UK, with over 50 awards in 2016 alone, including a Gold Health Lion at Cannes, for Missing Type, a joint Engine campaign with advertising agency, WCRS, for NHS Blood and Transfusion. This campaign contributed to an increase of 30,000 new donors equating to over 100,000 more lives saved. For more information, visit www.mhpc.com and follow the consultancy on Twitter @mhpc.
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