Key Investors Institutional Search Trends 09|12

09.10.2012

» Fixed income products are the focus of institutional investors

» The most frequently searched maturities are between one and seven years

» Minimum return rate expectations are 2.33% on average 

Düsseldorf, 9.October 2012 | Findings from the monthly analysis publication ,“Key Investors Institutional Search Trends“, show that institutional investors continue to search for fixed income products and also have moderate expectations on their return. "Security still dominates investment decisions for institutional investors. In view of the low interest rate policy, we are observing an increasing willingness to engage with higher return investments, other than fixed income products. During September, investors are nevertheless still waiting and exercising caution. Current insurance company investment trends show that investor behaviour will gradually change in the next months", Michael Kempkes, Partner of Key Investors GmbH, states regarding current developments.

The “Key Investors Institutional Search Trends" reflect the search behaviour of institutional investors, who use the Key Investors internet portal to search for and identify capital market products. Michael Werneke, Partner of Key Investors GmbH explains: "We are very pleased with the usage of our platform, which was launched at the end of August, and are convinced that our straighforward search processes will deliver additional value to institutional investors."

Fixed income products are the focus of institutional investors

With a share of 56%, fixed income products continue to be the asset class of central interest to institutional investors, followed at a significant distance by equity investment (16 %), funds (13 %), real estate (8 %) and alternative investments (7 %). A more detailed review shows that investors are searching for bonds, especially from industrial companies (52%), but also in the financial sector (21%) and public sector (14%), as well as Pfandbriefe (11%). The fairly high interest in products from the financial sector was unexpected.

Maturities between 1 and 7 years searched for the most

The search results for minimum maturities are structured such that investors are mainly looking for short maturities starting from one year (35%) and three years (29%), but also long maturities beginning at ten years (19%). The average term to maturity was 4.11 years. The searches chosen most frequently by institutional investors for maximum maturitities were seven and fifteen years (43% and 23% respectively) The mathematical average maximum term to maturity is 8.60 years.

Minimum return expectations are at 2.33% on average

Professional investors are relatively clear on their return expectations. A total of 54% of all users are searching for returns starting from 3%, with a further 29% being content with returns of 1%. All together, the average minimum return for all asset classes is 2.33%.

Focus on good and medium credit ratings

Returns of 3% are certainly not achievable with triple A products. Accordingly, 51% of institutional investors search for good rated products (A+ to  A-) and 40 % for medium rated products (BBB+ to BBB-).

About Key Investors

Key Investors GmbH is the central intermediary between institutional investors and product providers. Key Investors developed the intelligent information and decision-making portal www.key-investors.de specifically for insurance companies, pension and funeral funds, asset managers, and home offices to provide straightforward access to attractive products of national and international issuers, debtors, and banks.

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