Investors embrace risk as volatility and recession hamper search for yield

Equity allocation to rise

James Baxter-Derrington
clock • 1 min read

Professional investors are set to increase their allocation to higher risk assets over the next 12 months in an attempt to offset falling yield from recession and market volatility.

In a survey from Managing Partners Group of investors responsible for £276bn in assets under management, more than half said their risk appetite would increase, with 48% saying it would increase dramatically and 12% predicting a slight increase. The investors from across the UK, Italy, Germany and Switzerland argued the risk appetite increase was due to an intensified search for yield over the next six months, although 23% of those surveyed said allocations would not change as yield is already hard enough to find. Equity fund flows fall to weakest in eight years Across asset classe...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Core inflation dropped from 3.6% to 3.4%, while food inflation also continued to fall, with the increase in prices largely driven by energy base effects in Germany.

Eurozone inflation rises to 2.9%

Driven by energy prices

Elliot Gulliver-Needham
clock 05 January 2024 • 1 min read
JP Morgan was the best-seller in Europe for October with €7.1bn inflows, while BlackRock has been the best-selling house for the year to date, attracting €64.4bn.

European mutual funds suffer €19bn outflows in October

LSEG Lipper European Fund Flows

Cristian Angeloni
clock 27 November 2023 • 2 min read
The ECB's Enria has encouraged international standard-setters within the Basel Committee on Banking Supervision to bring order to this market.

ECB supports creation of global standards for AT1 bonds after Credit Suisse wipe-out - reports

Standardisation of contracts

Valeria Martinez
clock 17 November 2023 • 1 min read
Trustpilot