Mercer's top 10 investment trends for 2010

Going into 2010 Mercer highlights what it sees as the top ten investment trends that investors should critically examine in order to successfully manage their investment portfolios for long-term outcomes.

1. Changes to regulation could improve the investment environment
2. Emerging market growth will outstrip developed markets, but equity markets may have priced this in
3. Environmental, Social and Governance (ESG) factors will reappear on investors' radar
4. Investors will critically examine their investment strategies in the context of evolving deflation/inflation risks
5. Dynamic Asset Allocation (medium-term asset allocation tilts) will be de rigueur to capture market mispricing in the medium-term
6. Investors will undertake more due-diligence on hedge fund strategies
7. The big "macro" moves may be behind us - time to become "micro"?
8. Funds will review the role of illiquid assets in their portfolios
9. A weaker global banking system will create opportunities for private credit
10. Diversification will remain key.

1. Changes to regulation could improve the investment environment
The transformation of the local investment market will accelerate as Government-led initiatives in market development, taxation and advice regulation come to fruition. The Prime Minister, John Key, is expected to announce the Government's response to the Capital Market Development Taskforce report early in 2010.