DWS sponsored survey of pension funds finds increased usage of ETFs and other passive solutions

The majority of pension funds now view passive investments as a mature part of their portfolio, according to a DWS sponsored report.

The analysis, conducted by consultants CREATE-Research, came from a survey of over 150 pension plans globally, responsible for approximately EUR 2.9 trillion in assets under management. Sixty-six percent of pension fund managers surveyed regard passive investments as an established, mature part of their portfolio. The report also found that:

  • The average pension fund surveyed holds 32% of its investments in passives products or solutions, in the form of either index funds, passive mandates or exchange-traded funds (ETFs).
  • Amongst passive investors, there is a shift from market capitalisation-weighted indices towards smart beta, factor-based, ESG (environmental, social and governance) and other thematic strategies.
  • Almost 50% of pension funds plan to increase their passive ESG allocations by more than 5% of assets under management.
  • Only 10% of survey respondents expect passive investments to replace active, with the majority expecting both to co-exist in pension portfolios.

Thorsten Michalik, DWS’s Co-Head of Global Coverage Group and Regional Head of Asset Management, EMEA, commented: “Over the last decade we have seen a fundamental reshaping of asset management, with some strategies becoming standardised and made easily accessible at low cost, which means investors today have an unprecedented level of choice to help them meet their asset allocation goals. It is our job at DWS to facilitate that choice and provide market-leading products and solutions for our clients. ”

For further information please contact:

John Ferry
Phone: +44 (0) 7989726985
E-Mail: john.ferry@dws.com
Nick Bone
Phone: +44 (0) 207 547 2603
E-Mail: nick.bone@dws.com

DWS Group

DWS Group GmbH & Co. KGaA (DWS) is one of the world's leading asset managers with EUR676bn of assets under management (as of 31 Mar 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.

DWS wants to innovate and shape the future of investing: with staff from 35 nationalities, speaking more than 75 languages rooted in 22 countries, we are local while being one global team.

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Important Notice

This press release has been issued in the UK and approved by Deutsche Asset Management (UK) Limited, a 100% subsidiary of DWS. Deutsche Asset Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.

Any reference to  “DWS”, “Deutsche Asset Management” or “Deutsche AM” shall, unless otherwise required by the context, be understood as a reference to Deutsche Asset Management (UK) Limited including any of its parent companies, any of its or its parents affiliates or subsidiaries and, as the case may be, any investment companies promoted or managed by any of those entities.

Past performance is not a guide for future returns.

© Deutsche Asset Management (UK) Limited 2018.

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