Wealth managers and institutional investors are planning an increased focus on yield-focussed strategies over the next two years in anticipation of a stock market correction, according to research from CrossLedger Capital.
Its study of pension funds, wealth managers, insurance companies, asset managers, family offices and hedge funds across 13 countries, found 96% plan to increase the yield focus in their portfolios.
More than eight in 10 (83%) say they are doing so as they expect a stock market correction.
Almost half (49%) say they have locked in recent gains, while 43% cite volatility as a reason.
For three-fifths (61%) of respondents, a quarter or more of their portfolio is already focussed on delivering yield, while 13% say between 50% and 75% of their portfolio is.
CrossLedger Capital said the hunt for yield over the next two years will drive growing interest in digital assets, with nine out of 10 (89%) surveyed stating they are more open to exploring new asset classes, including 18% who are much more open.
Graham Cooke, CEO and founder of Brava, says: “Concerns about a stock market correction are building and that is reflected in the growing interest in yield-focussed strategies and potential changes in institutional portfolios over the next two years.
“Digital assets capable of delivering yields are firmly in the mix for institutional investors looking for yield-focussed strategies given the recent performance of the asset class and the potential yields funds can deliver.”
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