Appetite For Risk Increases

Professional investors say the funds they help to manage will increase their appetite for risk over the next 12 months in light of significant market volatility and growing talk of a global recession, says research from Managing Partners Group. Its research found 48 per cent say their appetite for risk will increase dramatically over the next 12 months, with 12 per cent predicting a slight increase. The study, amongst professional investors across Switzerland, Germany, Italy, and the UK, shows that this increased appetite for risk comes as 52 per cent of those surveyed see investors’ search for yield intensifying and becoming harder over the next six months. However, 23 per cent say it won’t change as the search for real yield is already difficult due to rising inflation combined with an economic downturn and rising costs, making it hard for companies to pay attractive dividends.