The results of the CIO Sentiment Survey broken down into investment impact and themes
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Investors’ risk perception is informing their planned allocation shifts, most visible in a spike in the number of funds planning “significant increases” to active fixed income in North America and EMEA.
Elsewhere, CIOs continue to de-risk and reduce equity allocations while the majority of respondents said they planned to increase allocations to alternatives, increasingly tilted toward real assets and private debt. Respondents listed the main defensive allocations in their portfolios as core fixed income (61 per cent) and real assets (30 per cent) and said they are venturing into private markets for yield and diversification.
Investors are shifting allocations to add core, EM and unconstrained fixed income
Net Change* in Fixed income allocations YOY
% of respondents
key:
CIOs continue to de-risk, reducing equity allocations
Net Change* in Fixed income allocations YOY
% of respondents
key:
Delving further into the data, responses reveal demand for private assets tilted most towards infrastructure (67% of respondents said they planned increases here) followed by private debt and real estate, as well as private equity.
Looking ahead, investors indicated future demand for active and passive fixed income, shifting allocations to add core, emerging market and unconstrained fixed income. Of these strategies demand for passive fixed income and active emerging market debt shows the biggest spike in demand compared to last year. Within long-only mandates, CIOs are increasing active allocation compared to last year.
Within long-only mandates, CIOs are increasing active allocation
% of respondents
KEY: