Fixed Income: Preparing for the big shift

The fixed income (FI) portfolios of institutional investors are evolving rapidly. Investment strategists around the globe are noting that, in the search for yield, many investors are:

• Shifting their fixed income portfolios to incorporate index strategies alongside active strategies, typically in search of performance at a lower cost
• Rebalancing the ways in which they access FI assets, focusing on yield, liquidity, and transparency
• Considering higher-yielding FI assets; creating standalone country/sector FI allocations to take advantage of market opportunities
• Incorporating ESG approaches to add a quality lens to their FI portfolios