Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eurozone debt crisis remains top concern of investment professionals - Barings

Wednesday, February 02, 2011

Rod Aldridge
Opalesque Industry Update - The Eurozone debt crisis is considered by investment professionals to be the most significant threat to investment growth over the next six months, with over two thirds (68%) citing it as one of the biggest Global macro-economic investment challenges, according to the Barings Investment Barometer1. Just 46% considered this a significant challenge in the last quarterly survey2, demonstrating that the Irish debt crisis and worsening situation in Portugal have renewed concern amongst the investment community for Eurozone stability.

The barometer, that explores intermediary attitudes towards the current economic environment and outlook as well as opinion towards the various asset classes (full results below), also found that concern for inflation is growing, with 32% saying that it is a significant challenge to investment growth. This up 14% on the last survey. A majority (74%) of investment professionals also say that their clients are concerned about the impact of inflation on their cash investments, and 86% say their clients have already, or plan to, reallocate cash investments to inflation protected assets. Reflecting this, cash is the least favoured asset class with 80% finding it unfavourable.

The prospect of a second banking crisis is more of a concern than it was three months ago (18% up to 30%) but much fewer are concerned about a double dip recession, with 7% considering this a threat to investment growth compared to the previous figure of 21%.

To help their clients through the current market volatility, 73% of advisers are encouraging greater diversification of assets. This is an increase on the last poll when 61% said they were doing this. Now, almost half (49%) of advisers are also recommending clients conduct more regular reviews of their investment portfolio.

Rod Aldridge, Head of UK Retail Distribution at Barings comments: “Market volatility continues to be at the forefront of investment advisers’ minds, especially with mounting concerns over the Eurozone. It is good to see that investment professionals are placing such a great focus on diversification and the regular review of their clients’ portfolio to best mitigate the risks of volatility.”

In terms of asset class favourability, emerging market equities and Asian equities (excluding Japan) remain at the top of the leader board in the ranking of investment professionals’ most favoured asset classes (with 95% favourable to emerging market equities and the same number favourable to Asian equities - excluding Japan). The barometer also shows that about two-thirds (63%) of investment professionals are encouraging investors to increase their allocation to emerging market equities and half (50%) believe investors should be increasing exposure to Asian equities.

Nearly two thirds (66%) are advising clients to decrease exposure to fixed income, more than any other asset class. This is an increase on the last survey when just over half (53%) where advising this.

Rod Aldridge comments: “It is encouraging to see that emerging market equities continue to be a most favoured asset class. We strongly believe that conditions for investing in emerging markets are attractive as they remain fairly valued with positive prospects for investment return. “

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t