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 ...
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