We surveyed 100 fixed income asset allocation decision makers at public and private pension schemes, OCIOs, insurers, endowments and foundations between February and March 2024. We captured their thoughts on a range of topics including the fixed income market environment, intentions and attitudes to credit markets and to emerging market debt, plus thoughts on active management.
Here are three highlights…
A tale of cautious optimism
Despite markets recalibrating expectations on the timing and depth of central bank rate cuts, almost three-quarters of asset owners agree the next 12 months will be a window of opportunity to take advantage of elevated bond yields. There's an appetite for quality and to increase duration, along with a balanced approach to increasing credit risk.
IG allocations suggest a shift to US and Europe
Three-quarters of respondents anticipate increasing or rebalancing IG credit exposure, with greater allocations focused on US and Europe over domestic allocations.
Conviction in active management
In an uncertain macro environment, a selective approach to fixed income is needed and the risk management benefits of an active approach are particularly valued. Asset owners were asked to what extent they felt an active approach would add value – with the most significant benefit anticipated in higher yielding assets.
See the full details
Fixed income at Capital Group
Upgrade your fixed income to a world leader
Actionable ideas
Navigate markets with our range of fixed income portfolios
Emerging markets debt
Access a broad, multi-faceted approach able to adapt in an evolving environment.
High quality credit
Aim to balance yield and risk, with a clearer risk profile.
Get our latest insights
Navigate bond markets with research and insights powered by over 240 fixed income investment professionals.
Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.