MADRID, 1 Dic. (EUROPA PRESS) –
57% of investors will increase the diversification of their portfolio and another 5% will increase their exposure to assets that carry low risk, such as cash or short-duration bonds, according to an asset allocation survey by MFS.
The study reveals that investor preference for fixed income in the current context, since it is expected to perform well after the falls registered this year.
“Over the past decade, the low yields offered by fixed income have caused investors to turn their backs on bonds. However, the recent increase in yields and spreads has changed the dynamics considerably and has led to a considerable improvement in terms of valuations of this asset class, it is likely that investors with a long-term horizon will find it attractive,” said MFS Spain relations director Alejandro Sánchez.
In equities, 43% have highlighted the European ‘value’ shares and 47%, the small capitalized ones, at the same time that 57% believe that the emerging markets are undervalued.
Alternative investments could be an important component of a diversified portfolio, according to the survey results, as well as investments that investors may consider taking exposure to if they are transparent and offer a sufficient level of liquidity.
“The current turbulent macroeconomic environment has highlighted a number of risks that have prompted investors to rethink their portfolio allocation as they weigh ways to conserve capital. The bull market is over and volatility is here to stay. A In our judgment, this situation will create opportunities for good active managers to make a difference and help investors weather these turbulent times,” Sánchez explained.
80% of investors say they are concerned about high inflation, 74% are concerned about geopolitical instability and 60% are concerned that central banks will make a mistake as they withdraw accommodative monetary policies.
65% of investors expect low growth in the Eurozone, and *46% expect inflation rates to exceed 4% in the Eurozone over the next one to three year period.
