Amid a massive upswing in international assets under management, US institutions are learning to cope with high-class problems.
International assets under management by US institutions tracked by Greenwich Associates jumped 72% during the one-year period between February 2005 and the same month in 2006, increasing brokerage commissions on trades of foreign stocks by 45%. Commissions on these trades brought in an estimated $2.6 billion.
In a newly released report, Greenwich Associated analyzes how the international boom is affecting US institutions and what managers are having to do in order to adapt to the sure in business.
The report found that pension funds in particular are turning their assets over to international equity managers in an effort to boost returns in their investment portfolios.
And as US institutions are witnessing a torrent of activity in Asia and Japan, European equity investments are seeing a great deal of activity, as well.
European equity investments have upped the proportion of their total international stock holdings consisting of European shares from 60% in 2005 to 68% in 2006.