However, Nick Tolchard, head of Invesco Middle East, said the percentage who described themselves as positive was actually “sizeable”, considering the Gulf’s torrid recent economic history, and that it suggested that there was “optimism in the region for the year ahead”.
Noting that one in five of those surveyed, or 19%, said they were “generally being instructed by their clients to buy in these volatile market conditions” rather than hold or sell their existing assets, Tolchard noted that this also indicated a belief that there “is value in markets today, and they are embracing the current environment as a buying opportunity”.
Other findings of the survey, which was taken during Invesco’s sixth annual Dubai investment meeting, attended by 329 intermediaries (not all of whom participated in the poll):
- Equity income is a core investment strategy in the region, with 92% of the respondents confirming that equity income is a strategy they apply within their client portfolios
- Two fifths (37%) of those surveyed said they used equity income for diversification purposes and 35% as part of a total return strategy, while one in five (20%) specifically use it to generate income
- Almost half (43%) of the respondents said they viewed dividends to be the primary driver of total returns over the long term, in terms of dividend yield (for 29% of the intermediaries) and dividend growth (for 14% of the intermediaries
On the subject of income investing, an area that Invesco specialises in, Invesco Perpetual chief investment officer Nick Mustoe defined it as being “about building portfolios which exhibit above market yield and underlying dividend growth, while taking advantage of the opportunities that exist in a low interest world”.
“In these uncertain times, it can make sense to invest in companies that pay dividends,” he noted.
“We believe there are attractive opportunities to be found through equity income investing, and by taking a global view, the potential diversification benefits are greater.”
Invesco is an arm of Atlanta, Georgia-based, New York Stock Exchange listed Invesco Ltd, the other component companies of which include Atlantic Trust, Invesco Perpetual, Invesco PowerShares, and Invesco Trimark.
