{"id":515555,"date":"2021-07-21T07:33:09","date_gmt":"2021-07-21T11:33:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/report-institutional-investors-plan-to-increase-indexed-fixed-income-exposures\/"},"modified":"2021-07-21T07:33:09","modified_gmt":"2021-07-21T11:33:09","slug":"report-institutional-investors-plan-to-increase-indexed-fixed-income-exposures","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/report-institutional-investors-plan-to-increase-indexed-fixed-income-exposures\/","title":{"rendered":"Report: Institutional Investors Plan to Increase Indexed Fixed Income Exposures"},"content":{"rendered":"

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Report: Institutional Investors Plan to Increase Indexed Fixed Income Exposures<\/b><\/p>\n

State Street Global Advisors\u2019 Survey Further Highlights Expected Rise of ETFs for Fixed Income Allocations, as well as the Integration of ESG in Fixed Income Strategies<\/i><\/b><\/p>\n

BOSTON–(BUSINESS WIRE<\/a>)–
\nState Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the results of a global survey that shows institutional investors have an increased appetite for indexed fixed income strategies across a multitude of major investment themes, including the fast-growing environmental, social, and governance (ESG) theme.\n<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20210721005101\/en\/<\/a><\/p>\n

\nThe findings revealed that exchange-traded funds (ETFs) are becoming an important fund vehicle for fixed income portfolio construction. The survey also found that investors believe the liquidity and price discovery benefits of fixed income ETFs became more attractive after witnessing COVID-19-driven market turbulence in Q1 2020.\n<\/p>\n

\nAccording to the report, \u201cFixed Income: Preparing for the Big Shift<\/a>,\u201d while institutional investors still see value in active fixed income portfolio management, active approaches are increasingly under pressure to deliver alpha, and investors are interested in maximizing yield while minimizing costs and risks. The findings are based on a survey of global pension and sovereign wealth funds, as well as wealth and asset managers.\n<\/p>\n

\n\u201cThe findings of our research validated trends we\u2019ve observed playing out among institutional investors recently,\u201d said Gaurav Mallik, chief portfolio strategist for State Street Global Advisors. \u201cIn the search for yield, institutional investors are shifting their portfolios to incorporate fixed income at a lower cost, and accompanying that shift is a focus on yield, liquidity and transparency. As an indexing and ETF leader, we remain well-positioned at the forefront of these trends, and we are dedicated to helping clients navigate this upcoming shift and achieve their goals.\u201d\n<\/p>\n

The Move to Indexed Fixed Income <\/b><\/p>\n

\nThe survey findings confirmed that indexed fixed income is delivering strong value accessing the sectors and building blocks that investors find useful in a cost-effective and transparent way. Respondents confirm that while active management of fixed income strategies still dominates, there is a strong interest in adding index exposure which translates to both a challenge and an opportunity for a shift to indexing in an evolving fixed income market:\n<\/p>\n