Nearly half (44 per cent) of global investors are not satisfied with their overall performance in 2022 so far, according to Bfinance’s latest global Asset Owner Survey.

While almost half were not happy with performance over the year so far, most did not appear to be blaming their strategies for their dissatisfaction, as 82 per cent were satisfied with their strategies’ performances.

Nearly two-thirds (63 per cent) were satisfied with the performance of their active managers and 95 per cent were satisfied with their infrastructure managers.

However, just 37 per cent were satisfied with their emerging market equity managers’ performances, with 28 per cent planning to reduce exposure to equities.

Almost nine in 10 (87 per cent) investors said inflation and rising rates will impair their ability to achieve their investment objectives.

Despite this, only 43 per cent have recently made and/or are about to make changes that increase the inflation sensitivity of their portfolios, while 17 per cent expect to do so in the coming 18 months.

More than half (52 per cent) of investors plan to increase their exposure to private markets, while 6 per cent plan to reduce these investments.

Additionally, 20 per cent of investors are predicted to shift towards active management in the next 18 months, compared to 14 per cent moving towards passive investment.

This follows 16 per cent of investors saying that they have moved towards active management in the past 18 months, versus 13 per cent who have moved towards passive investment - a contrast to 2018, when 31 per cent of investors were shifting towards passive investment.

ESG-related practices are still on the rise, with a quarter (25 per cent) engaging in impact investing and 32 per cent reducing portfolio carbon emissions.

“This has been a fascinating juncture at which to carry out this biennial study,” commented Bfinance head of investment content, Kathryn Saklatvala.

“There is now no doubt that we are in a period of secular macroeconomic transition. Institutional investors are evidently concerned about inflation and rising rates, but the looming threat of recession and the steep decline in public markets this year makes the prospective choices very difficult indeed.

“The investment strategies that may provide the greatest resilience in a climate of inflation and rising rates may also be more vulnerable in a climate of recession and higher defaults, and vice versa.

“Private markets have initially appeared to provide more resilience, and investors are continuing the long-term trend to increase exposure to illiquid strategies, but complacency should be avoided at all costs. Investors must now navigate these ‘traps’ with care.”

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