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Laxman Pai, Opalesque Asia: Many institutional investors are adding private credit investments alongside their public fixed-income allocations, said a survey.
Around one-third of investors (31%) elected to reduce their traditional fixed income allocations in favor of alternatives over the last nine months, and a further 29% plan to do so over the next 12 months. Those seeking returns in alternatives outnumber those going to cash.
Additionally, they are showing a growing appetite for new, systematic fixed-income strategies to help combat the impact of rising prices, said the State Street Global Advisors global survey of institutional investors on how they view the fixed-income market and how they are allocating their investments amid the ongoing market volatility.
The findings are based on a global survey of 700 pension funds, endowments, foundations, and sovereign wealth funds, as well as wealth and asset managers.
This year's findings also reveal that fee pressure and increased transparency are leading investors to embrace index-tracking investments as a way to gain efficient access to attractive sectors. For many investors, allocations are changing and a balanced approach of active and index investments is gaining traction.
As markets remain volatile and a recession looms, investors are intensifying their consideration of alternative sources of return. This change of approach by investors impacts how traditional sectors are viewed, adds increased liquidi...................... To view our full article Click here
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