April AAII Asset Allocation Survey: 7-Year High for Fixed Income Exposure

AAII members’ exposure to fixed income rose to its highest level in seven years last month. The April AAII Asset Allocation Survey also shows an increase in equity exposure and a decrease in cash allocations.

Stock and stock fund allocations rebounded by 2.3 percentage points to 57.5%. The historical average is 61.0%.

Bond and bond fund allocations rose 0.8 percentage points to 19.5%. Fixed-income allocations were last higher in April 2013 (19.7%). Last month’s increase keeps exposure to bonds and bond funds above their historical average of 16.0% for the 14th consecutive month and the 15th time in 16 months.

Cash allocations pulled back by 3.1 percentage points to 23.0%. Cash exposure is equal to its historical average.

The increase in bond exposure occurred as yields fell and the stock market remained highly volatile. Though they are at a seven-year high, fixed-income allocations are only slightly above the level we saw last August (19.4%).

While many individual investors made changes to their portfolios amidst the coronavirus volatility, the majority are continuing to stick to their portfolio strategies. The May AAII Journal’s Big Question provides more insights into how AAII members have reacted.

April AAII Asset Allocation Survey results:

• Stocks and stock funds: 57.5%, up 2.3 percentage points
• Bonds and bond funds: 19.5%, up 0.8 percentage points
• Cash: 23.0%, down 3.1 percentage points

April AAII Asset Allocation Survey details:

• Stocks: 24.9%, up 2.2 percentage points
• Stock Funds: 32.6%, up 0.2 percentage points
• Bonds: 4.0%, up 0.6 percentage points
• Bond Funds: 15.5%, up 0.2 percentage points

Historical Averages:

• Stocks/Stock Funds: 61.0%
• Bonds/Bond Funds: 16.0%
• Cash: 23.0%

The numbers are rounded and may not add up to 100%.

The AAII Asset Allocation Survey has been conducted monthly since November 1987 and asks AAII members what percentage of their portfolios are allocated to stocks, stock funds, bonds, bond funds and cash. The survey and its results are available online at: www.aaii.com/investor-surveys.