Asset owners cut duration, diversify ahead of QE tapering

Nine out of 10 Asian asset owners are moving to shorten their fixed-income duration in response to the prospect of interest-rate rises as the US Federal Reserve prepares to taper its quantitative easing programme. Many have been busily shifting out of domestic fixed income to other asset classes including alternatives, according to a report released overnight based on a survey by US consultancy Greenwich Associates. Domestic fixed-income exposure has been slashed to 23% of overa…