German institutional investors are looking for new sources of return in areas such as corporate and emerging market debt and high yield but are refraining from making any drastic changes ahead of regulatory pressure from the European Union (EU). While overall the exposure to equities will likely hold in the year ahead, 7% of those surveyed said they would seek fresh mandates for European equity managers with an equal number hiring for global equities. A net 7% of investors are expected to significantly increase exposure to equity assets. A net 7% are seen raising exposure to German equities, 6% in European equities, 11% in emerging markets with 13% in active global equities.
