Institutional investors in Asia are much less likely to outsource investment management in the wake of the global financial crisis, according to the latest survey from Greenwich Associates.

The survey, conducted during the March quarter, shows the proportion of institutions which intended to use external managers for international assets dropped from 92 per cent in March 2008 to 15 per cent this year. The proportion which intended to use external managers for domestic assets dropped from 45 per cent to 18 per cent.

Furthermore, 73 per cent of the smaller institutions – with assets between US$250 million and $1 billion – which already had external managers intended to expand their internal management over the next two years. For funds over $1 billion, 47 per cent intended to expand internal management.

The survey, of 135 respondents at 18 institutions in Asia ex-Japan, also showed a reduced intention to invest in alternatives and an increase in allocations to cash.