| NEW YORK, March 13
NEW YORK, March 13 Institutional investors
expect their portfolios to grow an average 7.6 percent this year
by increasing their investments in emerging markets, venture
capital, real estate and natural resources, according to an
investor outlook survey released on Wednesday.
Those surveyed cited the gridlock in Washington on trimming
the U.S. budget deficit as the most significant risk this year.
Last year, their primary worry was the euro zone debt crisis.
About 220 representatives of non-profit institutional
investors and pension funds, with combined assets of $123
billion, were surveyed during Commonfund's annual Forum.
The Commonfund Investor Outlook Survey showed portfolio
managers expect the MSCI Emerging Markets Index to
outperform the Standard & Poor's 500 Index over the next
Commonfund manages more than $26 billion for over 1,500
small and mid-sized endowments, foundations, pension funds and
other institutional investors.
Only 27 percent of investors expect commodities, as measured
by the Dow Jones/UBS Commodities Index, to outperform
the S&P 500 Index over the next three years. Twenty-six percent
of investors expect hedge funds, as measured by the HFRI Fund
Weighted Composite, to outperform.
U.S. government bonds, as well as high-yield bonds, are
expected to underperform as expected allocations to U.S.
Treasury and core U.S. fixed income strategies dropped to 52
percent and 43 percent respectively from last year.
The two greatest areas of concern for investors are market
volatility and shortfalls in meeting return objectives. The
factors of least concern are deflation and portfolio liquidity.
"The data shows that overall concerns about downside risk
have been reduced since last year, although respondents are
still very worried about achieving their investment return
goals," Commonfund President and CEO Verne Sedlacek said in a