Excerpts from: Tracker Hiring Analytics Mid-Year Report

Transcription

1 Excerpts from: Tracker Hiring Analytics Mid-Year Report August 2015 Contact: David Holmes Eager, Davis & Holmes

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3 U.S. Institutional Hiring Activity Overview Hiring activity in 2015 is on pace to meet last year s high water mark in outsourced mandate number. A high value of total dollars placed occurred in 2014, and continues in 2015 Q1-2: 33 mandates exceeding $1B were outsourced in mandates exceeding $1B were outsourced in 2015 Q1-2 Number of Placements: All U.S. Institutional Funds Total Dollars Placed: All U.S. Institutional Funds ($MM Dollars) Total Number Of Placements 4,000 3,500 3,000 2,500 2,000 1,500 1,000 2,341 2,724 3,198 3,632 1,874 Total Dollar Amount Placed ($MM) $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $185,276 $234,857 $211,170 $342,203 $155, $50, Q1-2 $ Q1-2 3

4 U.S. Institutional Hiring Activity History By Quarter Placements By Quarter: All U.S. Institutional Funds ($MM Dollars) Total Number Total Dollars Average Median Quarter Placed Placed Dollars Placed * Dollars Placed 2007 Ave/Qtr 578 $62, Q1 605 $88,988 Pre-Crisis Placement $174.5 $ 50 Activity Level 2008-Q2 666 $90,632 $153.4 $ Q3 591 $46,621 $97.5 $ Q4 460 $41,887 Post-Crisis $114.8 $ Q1 489 $30,446 Bottom $83.6 $ Q2 483 $34,720 $97.3 $ Q3 449 $23,966 $71.5 $ Q4 612 $30,415 $75.7 $ Q1 727 $39,527 $70.7 $ Q2 551 $42,239 $94.9 $ Q3 572 $41,840 $99.6 $ Q4 504 $40,463 $92.4 $ Q1 563 $37,037 $76.2 $ Q2 612 $51,327 $97.4 $ Q3 539 $44,516 $97.0 $ Q4 627 $52,396 $91.3 $ Q1 664 $69,707 $120.8 $ Q2 712 $62,055 $101.7 $ Q3 605 $46,660 Consistently $90.1 $ 36 strong hiring 2012-Q4 743 $56,435 activity $92.8 $ Q1 689 $42,429 $68.4 $ Q2 810 $56,441 $78.6 $ Q3 848 $59,197 $83.5 $ Q4 851 $53,103 $76.2 $ Q1 878 $95,772 $126.5 $ Q2 969 $86,614 $99.2 $ Q3 902 $71,070 $92.4 $ Q4 883 $88,747 Hiring activity $119.0 $ Q1 822 $72,174 reaches new high $98.3 $ Q $83,506 $88.4 $ 33 Average $ placed calculated on basis of placements that report mandate size. Not all placements report mandate size, particularly DC placements. Hiring Activity Reaches New High The last six quarters (2014 Q1 through 2015 Q1-2) are highest on record in number of new mandate placements and mandate value. EDH believes the increase results from : 1. Institutions greater reliance on private equity, which requires periodic reinvestment in new funds. 2. Diversification into increasingly specialized investment mandates 4

5 Share Of Placements In Each Asset Class: Trends Total Institutional Placements Alternatives and US Active Equity increased dollar share of total placements in 2015 Q1-2. Adjustments within fixed income allocations and termination-generated hires (e.g., PIMCO) increased placement activity in Active Fixed Income. Real Estate s share of hires have increased steadily over the past 5 years Asset Class % of % of $ Plcd. Plcmts. ALTRNATVE BAL BUNDLED CURRENCY EQ-A EQ-I FI-A FI-I GIC GIC-A GLOBAL INTL-EQ-A INTL-EQ-I INTL-FI-A INTL-FI-I MULTI-INV MULTIPLE RE TAA Total Key Asset Class Summary: 2014 Key asset classes increased share versus Q1-2 % of Plcmts % of $ Plcd % of Plcmts % of $ Plcd % of Plcmts % of $ Plcd Alternatives US Active Equity US Active Fixed Income Intl Active Equity Real Estate Intl Active Fixed Inc Asset Class % of Plcmts. % of $ Plcd. ALTRNATVE BAL BUNDLED CURRENCY EQ-A EQ-I FI-A FI-I GIC GLOBAL INTL-EQ-A INTL-EQ-I INTL-FI-A INTL-FI-I MULTI-INV MULTIPLE RE TAA Total Q1-2 Asset Class % of Ave. $ Median $ % of $ Plcd. Plcmts. Placed Placed ALTRNATVE BAL BUNDLED CURRENCY EQ-A EQ-I FI-A FI-I GIC GLOBAL INTL-EQ-A INTL-EQ-I INTL-FI-A MULTI-INV MULTIPLE RE TAA Total

6 Hiring Activity History Selected Asset Classes Asset class and style/product specific detail is provided in Tracker reports and database. US Active Equity (All Styles) Time Period # of Plcm t Total $ Plcd , , , , , , , Q ,949 Time Period US Active Fixed Income (All Styles) , # of Plcm ts. Total $ Plcd , , ,076 29, , , Q ,805 Time Period International Active Equity (All Styles) , # of Plcm ts. Total $ Plcd , , ,512 12, , , Q ,272 Alternative Investments (All Types) Time Period # of Plcm ts. Total $ Plcd , , , ,004 60, ,173 73, ,243 78, ,506 91, Q ,192 Real Estate (All Styles) Time Period , # of Plcm ts. Total $ Plcd , , ,527 21, , , Q ,748 6

7 Most Frequently Hired Managers Selected Styles/Asset Classes US Large Cap Value Manager Total Placed Percent Placed DELAWARE INVESTMENT ADV VULCAN VALUE PTNRS SNOW CAPITAL LSV ASSET MGMT DIMENSIONAL FD ADVISORS DODGE & COX DEPRINCE, RACE & ZOLLO PARADIGM ASSET MGT SEIZERT CAPITAL PARTNERS AMERICAN FUNDS OTHER Grand Total Note: More specific style detail is available in the Tracker reports and database. International Equity Active (All Styles) Manager Total Placed Percent Placed DIMENSIONAL FD ADVISORS HARDING LOEVNER MGMT LAZARD ASSET MGMT MFS INVESTMENT MANAGEMENT ACADIAN ASSET MGMT OFI INSTITUTIONAL ASSET M AMERICAN FUNDS BRANDES INVESTMENT MGMT WELLINGTON MGMT DODGE & COX WCM INVESTMENT MGMT AMERICAN CENTURY BAILLIE GIFFORD INVESCO HIGHCLERE INTERNATIONAL LSV ASSET MGMT PARAMETRIC PORTFOLIO FRANKLIN/TEMPLETON ARTISAN PARTNERS CAUSEWAY CAPITAL MGMT VONTOBEL ASSET MGMT VANGUARD GROUP OTHER Grand Total U. S. Active Fixed Income: All Styles Manager Total Placed Percent Placed BLACKROCK FINANCIAL MGMT METROP. WEST ASSET MGMT LOOMIS, SAYLES GARCIA HAMILTON JP MORGAN ASSET MANAGEMEN PACIFIC INV MGMT - PIMCO PRUDENTIAL INVESTMENTS WESTERN ASSET DOUBLELINE DODGE & COX VANGUARD GROUP TCW GROUP INCOME RESEARCH SANKATY ADVISORS BAIRD INV MGMT SERVICES CRESCENT CAPITAL GOLDMAN SACHS ASSET MGMT WELLS CAPITAL MGMT GUGGENHEIM PTNRS MARATHON ASSET MGMT VOYA INV MGMT MACKAY-SHIELDS FIN CORP DIMENSIONAL FD ADVISORS OTHER Grand Total

8 Consultant Firm Share of Placements by Market Total Institutional NEPC leads all consultants with 8% share of total institutional placements over the past 18 months. Callan leads in total dollars placed with 15% share. Total Consultant-Advised Placements 2014 Q1 Through 2015 Q2 Note: Consultant firm share of specific placements by market segment, asset class, style, etc. available in Tracker reports and database. Total Number Percent Number Total Dollars Percent Dollars Median Dollars Median Sponsor Consulting Firm Placed Placed Placed Placed ($mm) Placed ($mm) Size ($mm) NEPC , CAMBRIDGE , KUHNS, RV , CALLAN , AON HEWITT , CLIFFWATER , BOGDAHN CONS , STRATEGIC INV , HAMILTON LANE , FUND EVAL GROUP , MERCER , SUMMIT STRAT , WILSHIRE , TOWNSEND , PENSION CONS , GRAYSTONE PARTN DAHAB , MARQUETTE ASSOC , TORREYCOVE , ALBOURNE AMERIC , MEKETA INVESTME , PORTFOLIO ADV , SEGAL ROG CASEY , COLONIAL CONS OTHER , Total ,

9 How Investment Managers Use the Tracker Hiring Analytics Database Fast, effective analysis of institutional hiring activity! 1. Identify trends in institutional hiring specific to asset class, style, fund type, size, etc. 2. Understand the sources of search activity for a specific asset class or style, including fund type/size and consultant firms. 3. Plan consultant strategy by profiling the search characteristics (products placed, managers used, fund types/size) associated with each consultant firm. 4. Identify the leading investment managers and understand distribution of market share (based on mandate wins, not potentially misleading fund flows) specific to investment product/style. 5. View and sort individual placements or aggregate and analyze data. Fund bias caution Tracker data is compiled from publicly reported hiring activity and accordingly captures more public and endowment/foundation placements relative to their incidence in the marketplace. Reference page 67. To purchase the full report or subscribe to the Tracker Hiring Analytics Database Much more specific detail is available. Database subscribers can quickly generate reports and placement data specific to fund sponsor, investment manager, fund size, fund type, consultant firm, asset class, investment style and hiring date range, updated quarterly. We also prepare custom reports upon request. Contact: David Holmes Eager, Davis & Holmes, LLC dholmes@eagerdavisholmes.com 9

10 About Tracker The Tracker Mid-Year and Year End Reports analyze institutional asset placement activity to identify hiring patterns and trends useful to investment managers. Subscribers receive analyses of institutional hiring trends updated twice per year. More detailed analyses is afforded by a Tracker database subscription. Insightful reports can be quickly created by subscribers with direct access to the Tracker Hiring Analytics program/ database which is updated quarterly. Tracker has over 25 years of history over 50,000 manager placements to review and analyze. Tracker currently covers 24 asset classes and 70+ style categories. Asset classes and styles are expanded as dictated by changes in the institutional marketplace. Tracker provides effective coverage of consultant searches, capturing over 40% of the searches that leading consultant firms report in Standard and Poor s Consultant Directory. 50% 40% 30% 20% 10% 0% Callan % of Consultant Searches Captured in Tracker Database (for US-based plan sponsors) Ennis, Knupp Assuming that at least 75% of all defined benefit searches have consultant involvement and given that Tracker captures 40% of the searches consultant firms report (per above), then the database may account for approximately 30% (.75 times.40) of all institutional defined benefit hiring activity. Wilshire 10

11 Data Sources Tracker data has a public fund bias. Tracker data is compiled from publicly reported hiring activity available in industry periodicals and fund sponsor web sites. Because all hiring data is based upon public information, significantly more public fund placements are captured proportionate to their incidence in the marketplace (See table below). Placements in the corporate and Taft-Hartley markets are reported less often. We suggest the data be used with caution, and in conjunction with other research sources when possible. Tracker Value of New Mandates Placed Versus Total Institutional Asset Distribution - By Plan Type Sponsor Type Percent Dollars Placed - Captured in Tracker Database* MMD** Asset Distribution (Percent) Public Funds 81.6% 43.2 Corporate Funds 13.7% 45.8 Endowments/Foundations 4.2% 5.5 Taft-Hartley 0.5% 5.6 Total Percent 100.0% Total Placement Values ($mm) $321,945 * Mandate value of placements captured in Tracker in Public fund category includes 403(b) plans, some of which are non-profit corporations. Calculations exclude Tracker placements in subadvisory or insurance general account roles, which account for another $20.4 billion of mandates captured in Tracker over ** Institutional asset distribution by fund type. Source: Money Market Directory 11

12 Table of Contents (Of Full Report) How to Use Tracker Hiring Analytics 4 U.S. Institutional Hiring Activity Overview 5 U.S. Institutional Hiring Activity By Fund Type 7 U.S Institutional Hiring Activity By Fund Size 8 Asset Class And Investment Style Trends Share of Placements In Each Asset Class - Trends: Total Institutional 10 Share of Placements In Each Asset Class - Trends: Defined Benefit 11 Share of Placements In Each Asset Class - Trends: End And Fdn 12 Share of Placements In Each Asset Class - Trends: Defined Cont 13 U.S. Active Equity: Share of Placements in Each Style 14 U.S. Active Equity: Placement History in Selected Styles 15 U.S. Active Fixed Income: Share of Placements in Each Style 16 U.S. Active Fixed Income: Placement History in Selected Styles 17 International Active Equity: Share of Placements in Each Style 18 International Active Equity: Placement History in Selected Styles 19 U.S. Equity Index: Share of Placements in Each Style/Placement History 20 12

13 Table of Contents Asset Class And Investment Style Trends (cont.) Global Equity, Global Fixed Income, TAA and EMD Placement History 21 Alternative Investments: Share of Placements in Each Style 22 Alternative Investments: Placement History in Selected Styles 23 Real Estate: Share of Placements in Each Style 24 Real Estate: Placement History in Selected Styles 25 Investment Managers Hired Most Often For Each Specific Style U.S. Active Equity Styles (Core, LCG and LCV) 27 U.S. Active Equity Styles (Small Cap Core, SCG and SCV) 28 U.S. Active Equity Styles (Mid Cap, Small-Mid Cap and All Cap) 29 International Active Equity Styles 30 Global Equity, Global Fixed Income, GTAA and Emerging Market Debt 32 U.S. Fixed Income Styles (Core and Core Plus) 33 U.S. Fixed Income Styles (Bank Loans/Credit/Opportunistic, Infl- Prot, and High Yield) 34 Private Equity (Direct Funds and Fund of Funds) 35 13

14 Table of Contents Investment Managers Hired Most Often For Each Specific Style (cont.) Hedge Funds (Single Manager Funds and HFOF) 36 Distressed Securities, Risk Parity, and Real Assets 37 Real Estate (Timber/Farmland, REITs and Real Estate All Styles) 38 Defined Contribution Bundled; Defined Contribution Investment-Only 39 Outsourced CIO 40 Consultant Firm Intelligence Consultant-Advised Placements by Fund Type 42 Consultant Firm Share of Placements Total Institutional 43 Consultant Firm Share of Placements Defined Benefit Plans 44 Consultant Firm Share of Placements Endowments/Foundations 45 Consultant Firm Share of Placements Bundled Defined Contribution 46 Consultant Firm Share of Placements DCIO 47 Consultant Firm Share of Placements by Asset Class Active Equity All Cap 48 Consultant Firm Share of Placements by Asset Class Large Cap Growth 49 Consultant Firm Share of Placements by Asset Class Large Cap Value 50 Consultant Firm Share of Placements by Asset Class Mid Cap Styles 51 Consultant Firm Share of Placements by Asset Class Small-Mid Cap Styles 52 14

15 Table of Contents Consultant Firm Intelligence (cont.) Consultant Firm Share of Placements by Asset Class Small Cap Styles 53 Consultant Firm Share of Placements by Asset Class Intl Active Equity 54 Consultant Firm Share of Placements by Asset Class US Active Fixed Income 55 Consultant Firm Share of Placements by Asset Class Bank Loans/High Yield 56 Consultant Firm Share of Placements by Asset Class Credit and Opportunistic FI 57 Consultant Firm Share of Placements by Asset Class Global Equity 58 Consultant Firm Share of Placements by Asset Class Global Fixed Income 59 Consultant Firm Share of Placements by Asset Class Private Equity Single Funds 60 Consultant Firm Share of Placements by Asset Class Private Equity FOF 61 Consultant Firm Share of Placements by Asset Class Single Mgr Hedge Funds 62 Consultant Firm Share of Placements by Asset Class HFOF 63 Consultant Firm Share of Placements by Asset Class Real Estate 64 Appendix About Tracker 66 Data Sources 67 List of Abbreviations 68 15