According to the latest ING Investment Management Risk Rotation Survey conducted in June, appetite for risk has stabilised over the past quarter, while investors are increasingly looking towards multi-asset strategies.
The study, which was carried out by Citigate Dewe Rogerson amongst 111 insitutional investors, reported that 41% of respondents said their risk appetite had increased over the past six months.
While multi-asset strategies are currently favoured by only 29% of respondents, almost three quarters (73%) expect to use mutli-asset strategies over the next five years.
“Multi-asset strategies are certainly becoming more popular amongst investors due to their inherent low risk coupled with the potential for high returns in a low-yield environment. Inevitably, this has led to a surge in fund launches promoting a multi-asset approach and we believe that this approach will become more popular in the coming years” comments Valentijn van Nieuwenhuijzen (pictured) head of Strategy Multi-Asset at ING Investment Management (ING IM).
In terms of general asset allocation, preferences reflect only few changes, with equities remaining the most favourable asset class for 59%. However, this represents an 11% reduction compared to the first quarter.
Equities are followed by real estate, which is assessed positive by 48% and alternatives by 47%, commodities have been selected by merely 7% of respondents.