Fund buyers took a defensive stance ahead of 2020

Nearly 80% predicted greater equity volatility

James Baxter-Derrington
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Geopolitical uncertainty led 75% of fund buyers to turn to higher fees for active managers for potential outperformances
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Geopolitical uncertainty led 75% of fund buyers to turn to higher fees for active managers for potential outperformances

While fund buyers may not have predicted the most volatile market on record, they did anticipate greater market volatility in 2020, with the vast majority predicting an increase across markets, according to a Q4 2019 survey by Natixis Investment Managers.

Nearly four-fifths (79%) of fund buyers expected greater equity volatility in 2020, while 72% expected the same in bond markets and a further 73% admitted they would be willing to underperform their peers to assure greater down-side protection. Fixed income suffers record £3.7bn outflows in most volatile market in history Concerns including stock valuations, the viability of a sustained low interest rate environment and geopolitical uncertainty led 75% of fund buyers to turn to the higher fees for active managers for potential outperformances, while pointing to the popularity of passi...

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