Posted inFixed Income

Fixed income investors intend to increase risk in 2024

While many plan to have a more global allocation, according to Aeon Investments study.

Fixed income investors aim to increase their level of risk over the coming year as they eye opportunities overseas, according to research from Aeon Investments.

Overall, 84% of investors surveyed plan to up their risk over the next 12 months, with one in 10 planning to make “dramatic increases”, reports Christian Mayes from our sister publication, Portfolio Adviser.

Meanwhile, 15% will keep risk levels the same while 1% will make dramatic decreases.

The study surveyed pension funds, insurance asset managers, family offices and wealth managers who collectively manage around $544bn.

Looking further ahead, investors plan to further up their risk levels. Over a third (38%) of survey respondents said they will make dramatic increases and 44% will make slight increases over the next three years. An additional 17% said they expect to maintain current risk levels and 1% said they will decrease them dramatically.

Over the next three years, 88% of respondents also revealed they plan to have a more global fixed income allocation, with 35% intending to make dramatic increases.

Khalid Khan, Aeon Investments head of portfolio management, said: “Increasing global fixed income allocations maximises diversification across all markets and issuers, and can have a positive influence on the portfolio’s risk return profile. The same is true of incorporating a broad range of asset classes and sectors.”

He added: “Investors should seek a manager that offers experience and demonstrable track record across the fixed income spectrum.”

This story first appeared on our sister publication, Portfolio Adviser.

Part of the Mark Allen Group.