Eurozone collapse tops investor concerns – ING IM survey

Eurozone collapse tops the list of risks identified among institutional investors across Europe, according to a survey conducted by ING Investment Management.

The survey obtained opinions from 171 institutional investors across 16 countries, including the UK, Switzerland, France, Germany and the Netherlands between 11-18 October this year.

More than half, 53%, said they have become more sensitive to risk in the past 12 months, while just 5% said they have become less sensitive to risk.

A significant minority, 40%, said they believed a tail risk event could happen in the next year, against 60% who said they did not believe this would happen.

However, 60% also said they had taken steps to mitigate the effects of any tail risk event – suggesting that while more believe that such an event will not happen, they still feel the need to protect themselves, should it happen.

The biggest macroeconomic threat is still seen as collapse in the eurozone – 85% picked this as their worst fear.

Some 40% said that the biggest macroeconomic challenge would be a slowdown in China, while 38% said it would be slowdown in the US.

Having identified the risks, the survey then went on to ask how investors were taking steps to mitigate market volatility.

An equal number, 57%, have increased diversification and/or conducted more risk/reward analysis.

A quarter, 25%, have increased holdings in multi-asset.

Some 13% have increased cash holdings/liquidity, while 11% have done none of the above.

The table below outlines responses to asset allocation decisions expected to take place in the coming 12 months.

(figures in %)Fixed incomeEquityReal estateCommoditiesCash
No change5052667868

Finally, respondends were asked about how satisfied they were with their asset allocation strategies over the past 12 months.

(figures in %)Fixed incomeEquityReal estateCommoditiesCash
Satisfied/v. satisfied5646423129
Unsatisfied/v. unsatisfied1515242743



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