This infographic illustrates the challenges EMEA institutional investors face in trying to focus on their longer term objectives.

1. Sponsored by:Sources: The Economist Intelligence Unit survey, July 2017
Copyright: © The Economist Intelligence Unit, 2017
Political instability is main challenge to objectives
EMEA: Investors keeping their focus on the longer-term
EMEA investors remain cautious due to concerns about political instability and financial stability risks. They
are reallocating their portfolios towards bonds and other fixed income which may be a strategic response to
these perceived risks. Regulatory change has affected the investment process in the short-term, but in the
longer-term, EMEA investors think opportunities for alpha creation will occur mostly in new markets and
new products. Trends like demographic change are helping investors to become more focused on ESG
investing with the majority of investors seeking to increase their ESG allocations over the next three years.
of EMEA
investors have
become more
focused on
meeting their
long-term
objectives in
response to
short-term
pressure
The mainchallenges for EMEAinvestors in meeting theirlong-termobjectives
% respondents, select two choices
Political instability
Financial stability risks
Mispricing of risk
Growth cycle
Market volatility
Regulatory change
Inflation
Corporate governance 8%
40%
33%
29%
22%
29%
20%
20%
CHANGES ON THE
INSTITUTIONAL
INVESTMENT HORIZON
%44

2. CHANGES ON THE INSTITUTIONAL
INVESTMENT HORIZON
Sponsored by:Sources: The Economist Intelligence Unit survey, July 2017
Copyright: © The Economist Intelligence Unit, 2017
Investors increasingly flexible in their allocation decisions
Asset class investors most likely to reallocate towards in low
yield environment
% of respondents
of those surveyed have
moderately reallocated
their portfolios
Bonds and
other fixed
income
Equities
Commodities
Alternatives
22%
42%
27%
9%
46%
A more active and alternative approach to risk
of respondents plan to take a more active approach
to managing their portfolios given the current level
of market volatility and their long-term objectives%4
How do you manage risk?
% of respondents, two choices
Increasing use of
alternative investments
(eg, private equity, private debt,
commodities, real estate)
Don't know
Volatility hedging
Hedging with options
Currency hedging
Diversificaiton of
traditional asset classes
Risk budgeting
1%
13%
24%
36%
39%
42%
45%

3. Sponsored by:Sources: The Economist Intelligence Unit survey, July 2017
Copyright: © The Economist Intelligence Unit, 2017
Regulation and the opportunities for alpha creation
Where global regulation is creating opportunities over the next 3-5 years
% of survey respondents, top two choices
Differentials in
regulation
across
jurisdictions
increasing
arbitrage
opportunities
There will be
limited
opportunity
for alpha
creation over
next 3-5 years
The
opening of
new
markets
The
development
of new
products
Through an
increased
focus on
factors
Through
new/
advanced
technology
solutions/
tools
30%
54%
45%
40%
22%
5%
of respondents say
regulatory change
has most impacted
the provision of
investor protection
covering the life
cycle of investment
products and
services
ESG is becoming increasingly important
Changing demographics and governance rules alter ESG exposure
% of respondents
Increase next 0-12 months
Increase next 1-3 years
Increase next 3-5 years
Increase in next 5-10 years
No intention to increase
Don't know
17%
45%
15%
6%
3%
15%
of those surveyed say
principles/social
objectives guide their
portfolio monitoring
3 %
57%
CHANGES ON THE INSTITUTIONAL
INVESTMENT HORIZON