Short Duration Among Most Popular Fixed Income Strategies In 2023

Several U.S. public plans searched for short-duration managers to diversify their fixed income portfolios this year, as the U.S. rate-hike cycle made the sub asset class more attractive. MandateConnect data show that as some higher-duration strategies and funds struggled in the changing rate environment this year, U.S. plans broadly responded by seeking to diversify their fixed income portfolios. Fixed income searches made up the bulk of all requests for proposals this year, as plans looked to offset over-allocations to illiquid private assets and make up for weak equity-market performance.