Institutional Insights Q2 2009

INSTITUTIONAL INSIGHTS, Q2 2009

TheMarkets.com reports the findings of a survey of institutional investors conducted from
May 26 to June 5, 2009.

Key Findings
1. Nearly 40% of institutional investors think the market bottom is behind us

2. Around 80% of investors expect the S&P 500 will

• return to 1200 by the end of 2011 and
• to 1500 by the end of 2013

3. Key sectors of focus for institutional investors over the next 12 months will be: energy, financials,
healthcare and basic materials

Participants
127 institutional investors in 24 countries

About TheMarkets.com
TheMarkets.com provides research and estimates from hundreds of brokers to thousands of institutional
investors worldwide. Our users include three quarters of the 50 largest US asset managers, two thirds of the
top 100 European asset managers, and three quarters of the world’s 100 biggest hedge funds.

QUESTIONS?
For additional information, please contact Jasmine Swann at jswann@TheMarkets.com or +1 (212) 812-4631

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 Institutional Insights Q2 2009

1 Nearly 40% of institutional investors think that the

market has already rebounded, hitting its bottom
earlier this year.
Of those who think the bottom is yet to come, 53% think the market will have bottomed
by the end of the year; 91% expect the bottom within the next 12 months.

MARCH 2009
EXPECTED MARKET BOTTOM JUNE 2009

45%

40%
Percentage of Respondents

41%
35% 37%
30% 33%
25% 27%
20% 24%

15% 17%
10%
10%
5% 3% 3%
2% 2% 1%
0% 0% 0%
H1 2009 (March) / H2 2009 H1 2010 H2 2010 2011 2012 AFTER 2012
Already bottomed
in H1 (June)
Timeframe of Expected Bottom

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 Institutional Insights Q2 2009

2 Over 80% of investors expect that the S&P will return

to 1200 by the end of 2011, suggesting a swing in
optimism from March, when just over 50% reported
the same expectation.
In a parallel swing, nearly 80% of investors now expect the S&P 500 to return to 1500 by the end
of 2013, with nearly a quarter expecting it to return to 1500 by the end of 2011.

MARCH 2009 MARCH 2009

S&P: EXPECTED RETURN TO 1200 JUNE 2009
S&P: EXPECTED RETURN TO 1500 JUNE 2009
Percentage of Respondents

Percentage of Respondents
45% 45%
40% 40%
40% 41%
35% 38% 35%
30% 30%
25% 31% 30% 25% 28%
27%
20% 20% 24%
23% 23% 21%
15% 19% 15%
10% 14% 10%
3% 12% 3% 4%
5% 1% 5% 8%
7% 2% 0% 0% 1%
0% 0%
2009 2010 2011 2012 2013 AFTER 2009 2010 2011 2012 2013 AFTER
2013 2013

Year of Expected Return Year of Expected Return

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 Institutional Insights Q2 2009

3 Key sectors of investor focus over the next 12 months will

be energy, financials, healthcare and basic materials.
In comparison to investor views in March, energy has overtaken financials as the primary area of
focus, and the consumer sector has dropped out of the top four sectors, with basic materials
moving up into the top four.

MARCH 2009
INVESTORS' EXPECTATION OF SECTOR FOCUS, NEXT 12 MONTHS JUNE 2009

Energy 45%
53%

60%
Financials
42%

42%
Healthcare
36%

17%
Basic materials
32%
Sector

20%
Information technology
22%

13%
Industrials
22%
33%
Consumer
17%

10%
Telecommunication
9%

6%
Transportation
8%

0% 10% 20% 30% 40% 50% 60% 70%

Percentage of Respondents

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