Financial advisers and wealth managers across Middle East and north Africa (Mena) believe international fixed income will see the biggest increase in allocation from their clients over the next five years, behavioural finance firm Oxford Risk has found.
Nearly eight in 10 (78%) expect their customers to increase allocation to international fixed income, with 37% forecasting a “dramatic rise”.
This is followed by international real estate and domestic/Mena equities (both 67%); private equity (66%), international equities (63%); and domestic/Mena fixed income (59%).
Tech help
Greg Davies, head of behavioural finance at Oxford Risk, said: “Advisers across Mena clearly know what their clients want and expect strong interest in international fixed income as an asset class.
“By increasing their use of technology and algorithms, they can help deliver more consistent support to clients and avoid issues over assessments of risk tolerance and asset allocation.
“Employing software to guide decisions helps them become more consistent. Once a specific framework for the measurement of risk tolerance, risk capacity and other relevant factors is established it can be run at scale and speed.”
