New research from Managing Partners Group (MPG), the international asset management group, reveals 88 per cent of professional investors plan to increase their focus on yield as opposed to just focusing on growth in the next five years.
The wealth managers, pension funds and other institutional investors surveyed in MPG’s research, who are collectively responsible for GBP258 billion assets under management, attributed this focus on yield to the objectives of the assets they help to manage as well as the changes in the macro-economic and geo-political environment. Of this 88 per cent, 35 per cent said there would be a dramatic increase in the focus on yield as opposed to growth, and 53 per cent said it would be a slight increase. Only 12 per cent said there would be a focus on growth as opposed to yield.
The research with 100 professional investors across Switzerland, Germany, Italy, the UK and the US found almost all (93 per cent) believe the yield on the portfolio or funds that they manage will increase in 2023 compared to 2022. Of these, 20 per cent think their yield will increase dramatically in 2023, compared to 2022. 73 per cent state it will increase slightly.