In partnership with FT Longitude, in May and June 2025, TwentyFour Asset Management conducted a survey of 200 institutional investors about their use of fixed income funds now and their plans for the future.

Executive Summary

Optimism has returned to the fixed income asset class. A period of inflation-driven volatility has calmed, and central banks’ watchful approach to interest rate cuts is keeping yields elevated. In response, investors appear to be increasing their fixed income allocations in the expectation of steady returns.

Beyond the favourable short-term outlook, there are new undercurrents driving investment decisions in fixed income. Geopolitics continues to weigh on investors’ minds, with many shifting geographical exposure and 61% of our respondents saying the recent climate has altered their risk appetite. Government deficits are also back on the agenda, with 76% saying this will play a material role in their asset allocation this year. The shifting narrative around ESG and sustainable investing is another important topic. Despite the new US administration leading a backlash against ESG policies and commitments at the start of 2025, institutional investors rank Sustainable/ESG bonds highly, both for performance projections and planned allocation increases. 

Survey Highlights