Investor confidence is returning, according to the second edition of Janus Henderson’s Portfolio Panorama report.
It analysed more than 25,000 model portfolios for almost 6,500 global clients.
Janus Henderson’s portfolio construction and strategy team said: “UK investors are increasingly favouring active strategies, seeking control and flexibility amid market volatility.
“This shift highlights a move toward domestic equities and short-term yields, with a clear retreat from long bonds and a readiness to pay for selectivity in a rate-sensitive environment.”
It said UK investors are “edging back into risk”, steadily rebuilding exposure over the past 18 months as confidence returns.
Since August 2024, investors have increased their equity allocation.
It also found investors were staying overweight mid-caps and domestic equities while shying away from US tech giants.
It found there was “stubborn home bias” with investors holding firm on UK equities and not shifting towards US exposure.
When it comes to fixed income, bond market volatility has pushed investors to focus on income, shorten duration, and lean into active strategies.
Active allocations were also popular in this area.
The report added: “Clients are leaning into active management without letting costs spiral — active allocations dominate in fixed income, where the exposure to passive continues to drop, marks a broader shift in conviction and risk appetite.”
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
