Institutional investors in Germany forego return opportunities because of their short-termist attitudes to investing. That’s the conclusion of an analysis by Union Investment of €22bn worth of investment mandates. The analysis also found that the risk appetite of these (mainly German) investors has grown considerably since 2002.
With volatile market conditions prevailing, many investors are turning to cash as a risk-reducing measure. But are they really doing themselves a favour?
Growing concerns in China and other emerging markets could lead to “a prolonged deceleration” and have a “severe knock-on effect across the EU and the US”, according to the most recent report on risk by the Economist Intelligence Unit.
The events of recent weeks could lead investors to draw a stark conclusion; there is no such thing as a ‘safe haven’ in investment terms any more.
The majority of global pension funds have been increasing their equity allocation in the past six months. However, many would prefer to decrease it if they could just find yield somewhere else, because they expect a serious market correction.
If you are running the European business of a global fund management group, historic fund flows can be a seductive but dangerous metric. In the murky, random world of investments, often the only thing you can be sure of is that markets are not going to do you the service of following familiar patterns. …
Both European equities and absolute return are now more popular with European fund buyers than ever before, according to Expert Investor Europe’s freshest Pan-European data. For both asset classes, the majority of fund selectors are telling us they will increase exposure. Appetite for US equities, by contrast, is at an all-time low. Almost two thirds…
“Huge amounts of money have been flowing into multi-asset and risk-parity funds,” said Fred Ingham, head of international hedge fund investments for Neuberger Berman, who was one of the speakers at Expert Investor Europe’s first ever event in Monaco. “Kind of all that money is predicated on similar volatility assumptions about correlations within and across…
Investor risk profiling is at the heart of private wealth management. In theory, without proper knowledge of the investor’s goals, time horizon, liquidity needs, and risk aversion, it is impossible to recommend suitable investments or build efficient longterm investment strategies for that investor. Even worse, if an adviser is not aware of the investor’s risk…
Some 57% of delegates at Expert Investor Bilbao last week said they will step up their allocation to convertibles, while none are planning to decrease it. This strong appetite for convertible bonds stands in sharp contrast with other fixed income. Some 56% of fund buyers in the Basque country plan to decrease their exposure to…
The devaluation of the euro is regarded by many as a one-way street: if the US is a guide, then Europe’s QE 1 will be followed by QE 2 and QE 3 and if history is a guide, the devaluation may go on for many more months. So what should we do to prepare?
Morningstars December fund flows exposed an appetite gap between investment grade bonds and higher yielding, riskier bonds.
