Institutional investors may top up on fixed interest in 2013

Institutional investors are likely to keep their cash in fixed interest this year and may even top up their holdings, despite talk of a shift into equities, said HSBC Global Asset Management's product specialist, fixed income, Brian Dunnett.

While popular opinion suggests pension funds will make a wholesale shift to equities this year, the senior fixed interest product specialist said they are likely to hold their positions. He said: “It  may be difficult for some pension funds to make the case to go back to equities, following the performance of recent years.” Dunnett anticipates that several of HSBC Global Asset Management’s non-eurozone clients are planning to allocate to European fixed interest for the first time. “While I don’t predict much in the way of outflows happening in 2013, 2014 might be different,” he sai...