Market volatility and geopolitical uncertainty were cited as the biggest threats facing the industry in 2015.
The study, which collated responses from 171 IFAs during Invesco’s ninth annual Dubai investment meeting, indicated that just over half of respondents felt concerned about global economic growth. This outnumbers the 33% that felt positive about growth prospects.
These figures compared significantly to the same poll conducted in 2014, which found only 25% of intermediaries felt concerned about growth, while 67% felt positive about growth prospects.
Equities are the preferred asset class and are expected to perform the best in the current economic climate. However, a growing number of IFAs in the Middle East are looking to increase the allocation to multi-asset products within their clients’ portfolios.
“Rather than plateauing”
“We have seen great interest in multi-asset strategies for a while now, but rather than plateauing, it’s clear that there is significant and continued appetite for further investment into this type of strategy in 2015,” said Nick Tolchard, head of Invesco Middle East.
“In a continuously low yield environment, with an uncertain economic outlook, multi-asset has the potential to offer risk managed diversification. Equities continue to be ever popular, but the increased appetite for multi-asset is a significant trend, and one that we believe is here to stay.”
“Safest”
Nearly half of financial advisers said appetite for investment risk amongst clients has decreased, while only 17% said their clients’ risk appetite had increased.
Meanwhile, the US is considered the “safest” region for investment in this environment, with 62% of intermediaries saying their clients consider it to be the main “safe haven” in the world.
