Schroders survey reveals income versus risk dilemma
The results reveal that 36% believe that equities will be the most important asset class for clients over the next six months followed by multi-asset (29%) and bonds (26%). This is despite nearly half (46%) believing that bonds are the best asset class for providing income, a popular strategy for ensuring sustainable returns, against the uncertain outlook. Supporting this desire for income, 38% use convertibles at times of uncertainty due to their income potential and lower sensitivity to market volatility.
Regardless of the Eurozone debt crisis and the consequent default risk faced by a number of countries, the survey reveals a positive outlook for the region with 61% believing that the number of countries in the Eurozone will be the same at the end of the year.
Peter Beckett, Head of International Marketing, Schroders, commented:
"Despite slow political and economic progress across Europe, this survey has highlighted a difference in opinion, which could indicate changing sentiment towards markets and risk appetite. Investors are demanding income bond products that offer stable and consistent returns and yet they believe that equities, which are more volatile but with higher return potential, will be the most important asset class later this year. Equally, the use of convertibles could indicate that investors, while still concerned by market volatility, are more confident about the Eurozone outlook and global growth prospects this year.”
For further information, please contact:
Georgina Robertson, International PR Manager Tel: +44 (0)20 7658 6168
Notes to Editors
Schroders is a global asset management company with billion £182.2bn (€211.6 billion, $283.9 billion) under management as at 30 September, 2011. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 32 offices in 25 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service