Approximately 57% of institutional investors and wealth managers identified their current asset allocation as underweight to fixed income, according to survey results released Wednesday by Managing Partners Group. Meanwhile, about 26% of investors surveyed said their organization’s allocation is about right, while 17% said they are overweight on fixed income.
That balance may change in 2025, however, as these same investors unanimously expect to increase their allocations to the asset class, with 99% responding they expect to increase fixed income in their portfolios over the next 18 months.
“Particularly as we enter a period of high volatility, the benefits of diversification and a regular income means fixed income is an increasingly popular choice for institutional investors and wealth managers,” said Jeremy Leach, MPG’s CEO, in a statement accompanying the results. MPG also noted that bond yields are at their highest since the financial crisis of 2008 and 2009.
As investors unanimously reported expecting to increase their allocations to fixed income, 10% said they will increase allocations by up to 10%; 66% said allocations will increase between 10% and 15%; and 23% said it will rise by more than 15% over the next 18 months, without giving an exact percent.
MPG commissioned research firm Pureprofile Ltd. to survey, in August, 100 investment professionals working for asset allocators and wealth managers with a combined $172.12 billion in assets under management.
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Tags: Fixed-Income, Jeremy Leach, Managing Partners Group, MPG
