Income versus risk dilemma exposed

clock

Schroders has tested market sentiment with over 100 intermediary clients from Europe, the Middle East and Latin America, and found that 36% believes equities will be the most important asset class for clients over the next six months followed by multi-asset (29%) and bonds (26%).

The survey also exposed the current income versus risk dilemma for many intermediaries as nearly half (46%) believes that bonds are the best asset class for providing income, a popular strategy for ensuring sustainable returns, against the uncertain outlook. Supporting this desire for income, 38% said they use convertibles at times of uncertainty due to their income potential and lower sensitivity to market volatility. Regardless of the Eurozone debt crisis and the consequent default risk faced by a number of countries, the survey confirms a positive outlook for the region with as many ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Offshore Investment

FCA charges advice duo over 'reckless' high-risk pension investments

FCA charges advice duo over 'reckless' high-risk pension investments

Stephen Joseph Burdett and James Paul Goodchild have also been fined

Hope Coumbe
clock 24 May 2024 • 1 min read

New awards will celebrate excellence in Channel Islands financial services

Entries now open - deadline for submissions 8 June 2016

Professional Adviser
clock 17 March 2016 • 1 min read

Who won at the International Fund & Product Awards 2015?

Canada Life International, Schroders, and Old Mutual International among winners

Professional Adviser
clock 08 October 2015 •