A majority of institutional investors are planning to seek active, fixed-income funds over the next two years, according to research from London-based, credit-focused investment firm Aeon Investments.
Aeon, which polled institutional investors representing $544 billion in assets, found that 94% of respondents said they intend to pursue this strategy to “manage risk and drive returns.”
The survey, conducted in collaboration with market research company Pureprofile, polled 100 senior investment managers representing pension funds, insurance asset managers, family offices and wealth managers.
Among those polled, 91% said they believe allocations to credit opportunities will either increase slightly (67%) or dramatically (24%) over the next three years, while 8% said it will stay relatively the same.
“The past two years have been quite a ride for fixed-income investors, and it makes sense that they are willing to trade liquidity for higher yields and greater diversification,” said Evgeny van der Geest, Aeon’s head of capital markets strategies, in a statement. “At the same time, looking for managers with experience across a variety of fixed-income classes and that engage a robust bottom-up credit investment process has real value in the current markets.”
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Tags: Aeon Investments, Credit, Evgeny van der Geest, Fixed-Income