MPG: Institutional investors expect to increase exposure to fixed income

MPG: Institutional investors expect to increase exposure to fixed income

November 27, 2024

Fixed Income
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New research from international asset management company Managing Partners Group (MPG) reveals that professional investors expect their organisation’s allocation to fixed income to surge over the next 18 months, after a period of being underweight.

Research among global institutional investors (pension funds, insurance asset managers and family offices) and wealth managers found over half (57%) say their organisation’s current allocation to fixed income is underweight. Around a quarter (26%) say it’s about right and under a fifth (17%) say their organisation’s current allocation to fixed income is overweight.

But this looks set to change as the prospects for fixed income returns are strong, with bond yields at their highest since the financial crisis, the study by MPG which runs the Melius Fixed Income Fund found.

MPG’s survey of global institutional investors and wealth managers with total assets under management of €136 billion under management found that almost all (99%) see their organisation’s allocation to fixed income increasing over the next 18 months. Around one in 10 (10%) say this will increase by up to 10%, over two thirds (66%) say this will rise by between 10% and 15%, and 23% say it will rise by more than this over the next 18 months.

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