Investor’s risk appetite grows despite eurozone crisis
Investor’s willingness to increase exposure to riskier asset classes has increased over the past six months, despite growing concerns over the crisis in the eurozone, a recent survey conducted by NN IP revealed.
The survey, which was carried out by 120 institutional investors throughout July revealed that 28.3% of respondents had increased their appetite for risk over the previous six months, while 18.3% said their appetite decreased.
Valentijn van Nieuwenhuijzen (pictured), head of Strategy, Multi-Asset at NN Investment Partners, says: “A Eurozone crisis was viewed as significant threat by almost half (49%) of investors who appear to be approaching the current situation with both caution and confidence.”
Other potential dangers are a black swan event, according to 24% of respondents and a Chinese slowdown, according to 21% of investors.
In order to mitigate potential risk over the coming months, investors appear to be most in favour of using multi-asset (74%) and equity strategies (56%).
When broken down there is little difference in preference between balanced and total return multi-asset strategies – 37.3% compared to 36.3% respectively.
Both strategies are more favoured among investors than illiquid assets such as private equity and mortgages (26%), hedge funds (22%) and high dividend (18%).