Most institutional investors, 63% and 56%, have a bullish outlook on private equity and fixed income for 2023, respectively. A majority have bearish views of various real estate classes and cryptocurrency, based on responses to the 2023 Natixis Institutional Outlook Survey, which polled investors in October and November.
Investor expectations were split about equally for equity and private debt, with a slight majority, 51%, having a bullish viewpoint.
Many investors plan to take a cautious approach to their fixed-income investments. The largest portion, 49% and 48%, intend to increase their allocations of investment-grade and government bonds, respectively, while 38% will maintain their allocations.
Half state that they will raise allocations for green bonds, and another 47% will maintain their level.
When determining equity allocations, 40% of institutional investors said they would increase their holdings. Other regions had lower percentages that intend to raise holdings.
Institutions' most popular response was to maintain their current alternatives' exposure, and it was more than 50% for all but two asset types. Within alternatives, 44% said they would increase exposure to infrastructure followed by 43% that plan on doing so for private equity.
