Institutional investors and wealth managers predict bond rally

Written by Adam Cadle

07/09/2023

Almost a quarter (23%) of institutional investors and wealth managers worldwide believe it is very likely there will be a bond rally in the next 24 months, according to new research published by Managing Partners Group (MPG).

Eighty-two per cent of respondents expect nervous investors to continue to exodus equity funds in favour of fixed income funds. Almost two-thirds (65%) of respondents said the huge outflows from stock markets in recent weeks will increase slightly, while 17% expect dramatic increases. Just 2% said the outflows will decrease and 16% said they will stay the same.

When asked to pick which fixed income sectors will benefit most from a returning bull run, institutional investors and wealth managers chose US Govt bonds, followed by EU government bonds, US non-investment grade bonds and then EU investment grade.

Institutional investors and wealth managers with assets of €245bn under management were interviewed for the research.

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