Risk

European investors retain their appetite for risk assets

European investors have retained an appetite for risk assets, buoyed by confidence in the global economy, according to the latest edition of the Invesco European Investors Sentiment Index.

The fourth edition of the index, compiled for Invesco by Citywire through a survey of some 100 fund selectors across Europe, reveals that 55 per cent plan to increase their allocations to European equities in the next 12 months.
 
In addition, 54 per cent plan to invest more in global emerging markets and 34 per cent in Asia Pacific.
 
As Europe shows signs of recovery, only 16 per cent of the fund selectors cite the outlook for the Eurozone as a driving force in their investment decisions. Moreover, reflecting a generally more relaxed attitude to risk, only 8 per cent of the selectors now cite general aversion of clients as a factor, compared with 38 per cent six months ago.
 
Meanwhile fixed income remains a favourite area for investors to cut back on.  No fewer than 28 per cent plan to reduce holdings of US Treasuries, up from 21 per cent previously, followed by Eurozone Government issues (23 per cent) and US Corporates (17 per cent).
 
The survey also shows that 46 per cent of respondents have positive views about the global economy. That is below the 55 per cent figure of June 2013 but significantly higher than 18 months ago, when only 17 per cent expressed their confidence in the economy.
 
The risks of rising interest rates and inflation are highlighted as the primary factors influencing future investment decisions.
 
“The survey’s results confirm how important it is to stay close to our clients in offering them high-quality investment solutions that answer to their needs in an evolving market environment,” says Sergio Trezzi, head of European retail at Invesco.

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