Managing Partners Group: Institutional investors favour fixed income over equities

Managing Partners Group: Institutional investors favour fixed income over equities

April 11, 2024

Fixed Income Equity
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New research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 months.

Almost all (94%) questioned in the global study with institutional investors and wealth managers holding assets of €107 billion under management say fixed income is more attractive with 17% saying it is becoming significantly more attractive.

The research by MPG, which runs the Melius Fixed Income Fund, found growing worries about a global recession and increased volatility in the equity markets plus increased correlation between bonds and risk assets is driving the shift in views.

US investment grade and European investment grade fixed income assets are likely to be the biggest beneficiaries of institutional investors and wealth managers increasing their exposure to fixed income but all asset classes will benefit.

Professional investors still believe there is a possibility of a bond rally if major economies slip into recession. Around 20% believe a bond rally is very likely in the next 12 months rising to 42% saying a bond rally is very likely over the next 24 months.

Around 79% think a bond rally is quite likely in the next 12 months while 57% believe it is quite likely over the next 24 months.

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