Investor’s willingness to increase exposure to riskier asset classes has increased over the past six months, despite growing concerns over the crisis in the eurozone, a recent survey conducted by NN IP revealed.
The survey, which was carried out by 120 institutional investors throughout July revealed that 28.3% of respondents had increased their appetite for risk over the previous six months, while 18.3% said their appetite decreased.
Valentijn van Nieuwenhuijzen (pictured), head of Strategy, Multi-Asset at NN Investment Partners, says: “A Eurozone crisis was viewed as significant threat by almost half (49%) of investors who appear to be approaching the current situation with both caution and confidence.”
Other potential dangers are a black swan event, according to 24% of respondents and a Chinese slowdown, according to 21% of investors.
In order to mitigate potential risk over the coming months, investors appear to be most in favour of using multi-asset (74%) and equity strategies (56%).
When broken down there is little difference in preference between balanced and total return multi-asset strategies – 37.3% compared to 36.3% respectively.
Both strategies are more favoured among investors than illiquid assets such as private equity and mortgages (26%), hedge funds (22%) and high dividend (18%).