Abenomics tops investor fears – ING IM

Survey2Concerns about Abenomics in Japan weigh heavily on investors' minds, as does inflation, the Ukraine crisis and a hard landing of the Chinese economy, according to a survey.

ING Investment Management (ING IM) says 72% of the 111 institutional investors it polled worldwide consider the economic policies advocated by Japanese prime minister Shinzō Abe to be a “significant” portfolio risk.

Despite benign forecasts for inflation in much of the world, inflation was a significant risk for 46% of respondents. With 42%, the Ukraine crisis ranks third and a hard landing of the Chinese economy fourth, with 41%.

The appetite for risk decreased for 45% of investors, increased for 41% and stayed the same for 14% during the second quarter of this year. The corresponding figures for the previous quarter were 39%, 42% and 19%, respectively.

Valentijn van Nieuwenhuijzen, head of multi-asset strategy at ING IM, says: “There have been some underlying concerns throughout the past quarter, with Abenomics and inflation continuing to cause debate.”

He added that these issues have not significantly dampened investors' appetite for risk.

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