More than 60% of investors in a survey of pension funds, consultants and asset managers in the UK say equities will be the most attractive asset class in the next 12 months, compared withonly 35% who said the same in last year's survey.
However, investors are still concerned about risks to the economy, according to the survey by MHP Communications. Nearly two-thirds are concerned that the UK economy is vulnerable to systemic risks, while more than half, 54%, say European regulation poses the biggest threat to the UK financial services industry.
That said, investors in the survey seemed to be more comfortable with risky investment techniques than in the past. More than four in five, 86%, said some element of leverage is necessary for investors to achieve their targets.
“The impression given is that investors while all too aware of the ongoing vulnerability to the possibility of harmful impacts from external shocks and EU regulation, are nonetheless developing an appetite for riskier assets and prudent leverage in order to meet their goals,” says Sally Todd, managing director, MHP Financial.
The survey covered 72 people in senior positions.
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