Sovereign wealth funds pile into bonds | Financial Times

Sovereign wealth funds pile into bonds | Financial Times:

Sovereign wealth funds are piling into bonds as the world's biggest investors defend their portfolios in anticipation of the end of the decade-long bull market.

Fixed income has displaced equities as the largest asset class for sovereign wealth funds, which countries typically use to either save for a rainy day or to provide money for future generations. Most state-backed investors expect the end of the economic cycle within the next two years.

Fixed income allocations increased to 33 per cent this year from 30 per cent in 2018, according to an annual survey of 139 sovereign wealth funds and central banks that oversee $20.3tn, conducted by Invesco, the US fund manager.