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Bailey McCann, Opalesque New York: With high interest rates casting a shadow over 2023, investors have been turning to old haunts - broadening allocations to traditional non-managed savings products, including bonds, bank deposits and structured products, according to asset management strategy consultant Indefi in a new research note.
Indefi's data focuses primarily on European investors, but analysts note that the trends are broadly similar in the US.
Higher rates are drawing investors to fixed-term savings products over riskier investments. German investors, for example, have put over +€90bn into fixed-term savings products year to date. In France, regulated saving accounts raised more
than €33bn year to date, Indefi data shows.
The story is the same for structured products - issuance volumes in the first half of 2023
have already surpassed the 2022 total. Autocalls are the largest category but investors are putting assets into capital-protected and interest rate-
linked products as well.
Based on the popularity of these channels, Indefi notes that asset managers may need to adjust their appeal to investors. A higher for longer global interest rate regime means that the products noted above are likely to be compelling at least through the near to medium term. As a result, asset managers may want to focus on themes like cost-effectiveness or 'value for money' in their outreach to investors.
Indefi's report also notes that o...................... To view our full article Click here
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