Fitting a pattern seen in some other wealth management surveys, a survey by Natixis says equities remain the most favoured asset class as 2016 looms.

Equity markets are considered the place for institutional investors to be during 2016, while alternative assets are favoured by slightly fewer money managers, and fixed income is strongly out of favour, a survey finds.

Natixis Global Asset Management, in a survey of 660 institutional investors, found that most respondents (77 per cent) expect equities to be the top-performing asset class in 2016, followed by alternative investments (63 per cent) and fixed income (24 per cent).

Among equities, 42 per cent expect global equities to be the top performer in 2016, while 33 per cent cite US equities.

Some 84 per cent of investors are worried about the low-yield environment and some 65 per cent of the survey base said they will move from longer-duration bonds to those with shorter durations if rates begin to rise – or already have made that adjustment. Others plan to reduce their exposure to bonds (49 per cent) and increase their use of alternative strategies (47 per cent).

On the alternative assets side, 50 per cent of respondents said they will increase private equity holdings and 46 per cent will increase private debt, while 41 per cent will increase allocations to hedge funds. 

Headquartered in Paris and Boston, Natixis Global Asset Management’s assets under management totalled $865.9 billion as of 30 September 2015. The organisation is part of Paris-listed Natixis, and a subsidiary of BPCE, the second-largest French banking group.

Institutional investors covers not just pension funds and life insurers, but organisations including banks and large wealth management houses.