Assets overseen by institutional investors in the U.S. rose about 6% in 2014, which is modest in comparison to the 9.8% boost in the previous year, according to recent research from Cerulli Associates.
While modest overall growth, the global analytics firm found significant growth when it looked closer within the institutional channels – specifically within custom solutions and sustainable investments.
Chris Mason, research analyst at Cerulli, says, these areas represent “continued addressable market opportunities for institutional asset managers.”
According to Cerulli’s research, there is a vast and growing demand by institutional investors for more customized investment solutions.
“Custom solutions assets have more than doubled since 2010 from about $500 billion to more than $1 trillion last year,” Mason said in a statement. “Cerulli’s projections show increasing demand for custom solutions in the next five years from corporate pension plans, public plans, and non-profits.”
Cerulli also finds that asset managers and investment consultants are moving quickly to address the demand for sustainable (aka “environmental, social and governance” or “impact”) investments by U.S. institutional investors.