Investors embrace risk as volatility and recession hamper search for yield

Equity allocation to rise

Professional investors are set to increase their allocation to higher risk assets over the next 12 months in an attempt to offset falling yield from recession and market volatility.

In a survey from Managing Partners Group of investors responsible for £276bn in assets under management, more than half said their risk appetite would increase, with 48% saying it would increase dramatically and 12% predicting a slight increase. The investors from across the UK, Italy, Germany and Switzerland argued the risk appetite increase was due to an intensified search for yield over the next six months, although 23% of those surveyed said allocations would not change as yield is already hard enough to find. Equity fund flows fall to weakest in eight years Across asset classe...