Black swans, EM and Eurozone are main risk worries

Risk2Investors’ risk appetite is increasing, data from Dutch fund manager NN Investment Partners suggests, although about a quarter of them fear a ‘black swan’ event.

The firm’s Risk Rotation Index shows that 56% of global institutional fund managers on its target panel of survey respondents said in December that their risk appetite had remained the same over the previous six months – but just under a third (28.8%) said their risk appetite had increased.

Though 15.4% said their risk appetite had decreased, the general direction is upwards, with overall net risk appetite at 13.4% – higher than the previous quarter’s 10%.

Investors said the biggest threat to their portfolios was a crisis in emerging markets, which was cited by 33% of investors, followed by a ‘black swan’ event (25%) and a Eurozone crisis (22%).

One in seven (13%) investors rate a black swan event as a ‘significant’ risk.

The survey covered 104 international institutional investors and was carried out in December 2015.

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