Exchange traded funds are packing a considerable wallop in the construction of portfolios, according to a global survey on institutional investors on the fixed income market, reported pioonline.com.

They’re strutting an "expanded role in portfolio construction," as reflected by a recently released by survey sponsor State Street Global Advisors, survey sponsor.

Participating in the survey were 700 global institutional investors who oversee asset allocation decisions at pensions funds, wealth managers, asset managers, endowments, foundations and sovereign wealth funds. Administered by an independent firm unaffiliated with SSGA, the survey took place in the middle of the year.

"Our 2022 survey shows that the role of ETFs in asset allocation is expanding to non-core sectors," said the report, "The Role of ETFs in a New Fixed Income Landscape. We can see the increase in use, as compared to our 2021 fixed income survey." 

Meantime, in August, etf.com reported on the apparent hyper popularity of longer duration US Treasuries and investment grade corporate debt ETS among investors in Europe. That has come in the face of lingering doubt over escalating inflation and the reaction by the Fed.

Bloomberg Intelligence data was revealing: it showed fixed income yields attracted more than $4.2bn  over the past three months as of the time of reporting.

Skilled active management? The cocktail of ballooning inflation, interest rates and dispersion across fixed income sectors basically is giving managers the proverbial chance to strut their stuff, according to -wellington.com.

That’s why now might be an idyllic chance for investors to put their portfolios in a space to opportunistically position their portfolios.

Their individual fixed income markets have priced in the gulf in threats of recession and inflation in the euro area opposed to the U.S, the site continued. Dating back to the dawn of the Ukrainian invasion, compared to the U.S., credit spreads in the euro area have gotten wider.

This year, investor trepidations over fixed income performance have maintained their momentum, according to wellsfargo.com. Among top questions in the minds of income investors:

1. What is happening to bonds so far in 2022?

2. Why continue to invest in bonds?

3. Why is the Fed garnering so much attention this year?

4. What should investors expect from the remaining three Fed meetings of this year?

5. What does Fed quantitative tightening mean?

6. What do you mean when you say, “financial conditions in the economy are tightening”?

7. Should we be worried about liquidity in bond markets?

8. What is the shape of the U.S. Treasury yield curve telling us?

According to a new survey from advisory and accounting firm EisnerAmper, inflation is the largest business challenge for alternative investment managers. The annual survey was conducted during EisnerAmper’s 7th Annual Alternative Investment Summit. It revealed that almost three-quarters of alternative investment professionals believe the U.S. is already in a recession or will enter one by the end of the year. In addition to inflation, geopolitical concerns and escalating regulatory obligations were also named as top business challenges for alternative investors over the next year. Peter Cogan, Managing Partner of EisnerAmper’s Financial Services Group stated that “2021 has been a rollercoaster for alternative investment managers. The ongoing war in Ukraine, coupled with global records of inflation and poor public market performance have forced investors to be nimble in their investment philosophies. The Federal Reserve has made it clear that they’re steadfast in their mission to lower inflation and the survey shows that alternative investors expect this to be a long-term challenge to navigate.”

Finsum:According to a recent survey of alternative investment professionals, inflation, geopolitical concerns, and escalating regulatory obligations are the top business challenges for alternative firms.

According to a recent article on CNBC, market volatility is a big concern for clients right now. The author spoke to experts from CNBC’s Financial Advisor Council to see what advisors were discussing with their clients. According to the advisors, many clients, including retired investors and those that rely on savings, are especially worried about volatility in the market. The article quoted Carolyn McClanahan of Life Planning Partners in Florida, who stated that “The biggest concern for my clients is all of the uncertainty in the world. They wonder ‘what’s next and how that would affect the market — so it’s along the lines of fear of market volatility.” Investors are also fearful of large-scale job losses triggered by their memories of the Great Recession when unemployment peaked at 10% in October 2009. Home prices are another concern. While there are some signs that the housing market may be cooling down, a combination of rising mortgage rates and high prices are still causing concern for investors.

Finsum: Based on recent discussions with advisors, market volatility, job losses, and high home prices are huge concerns for clients right now.

Interest in directing indexing’s, well, titan

Direct indexing has drawn the attention of the titans of the asset management industry – and the reasons are obvious, according to wealthytrails.com.

Do tell.

Will do. There’s been a steady erosion of the fee management of mutual funds and exchange traded funds stemming from the escalation of ETFs themselves. Room is scant for addition products with more than 2,000 US ETFs and 5,000 US equity mutual funds, based exclusively on a universe of just 3,000 stocks. There’s a search for new revenue generating business areas by the industry. What’s more, interest by clients in customized portfolios, which is burgeoning, is on the radar.

Asset managers, shucking aside a commingled vehicle, execute direct indexing on the behalf of clients by assuming positions reflecting a representative samples of underlying index constituents, according to impactinvresting.com.

What does this approach yield? Customization, which abets flexibility. That includes pinpointing the index to track and exposures to circumvent -- or avoid – and potential tax advantages. That way. You can opt for the actual ingredients and directly call the underlying equities your own. Consequently, you don’t have to make purchases elsewhere.