Middle East investors turn to multi-asset funds

Investors in the Middle East are joining the trend towards multi-asset funds, according to intermediaries in the region, who say diversification is the main reason for choosing these products.

Multi-asset funds were judged to be the second most popular fund type after equities in the region, according to a survey of more than 180 intermediaries organised by Invesco in Dubai, a third of whom said between 20-50% of client portfolios are currently allocated to multi-asset funds.

Nearly two-thirds (62%) of the intermediaries said they expected client allocations to multi-asset funds to rise in the next two years.

“The high and anticipated increased allocations to multi-asset funds from clients in the Middle East is an interesting trend, indicative of the increasing popularity of the asset class as a way to not only diversify portfolios in the current climate, but also manage risk and increase returns,” says Nick Tolchard, head of Invesco Middle East.

More than two-thirds of the intermediaries had a positive view about global economic growth in 2014, an increase from 56% in last year’s survey and just 38% in 2012.

©2014 funds europe

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