Adviser appetite for gold and absolute return wanes

Positive sentiment towards gold and absolute return funds has decreased since the summer, according to a survey conducted by Barings Asset Management.

The Barings’ Investment Barometer survey, carried out between October 3 and November 8, gathered 120 advisers responses about current economic outlook and their views of major asset classes. 

Favourability towards gold has decreased by 12 per cent since the last survey, conducted between June and July, from 71 per cent to 59  per cent.

Nearly 12 per cent fewer advisers are recommending clients increase exposure to absolute return funds since the last survey, 18 per cent of advisers compared to 30 per cent in the last survey. 

Bestinvest senior analyst Ben Seager-Scott says: “Over the summer, the biggest issue worrying investors was inflation. People thought growth was going to come down and so assets that need growth like equity looked less attractive than absolute return.”

He adds: “Since the sell-off in equity markets in the summer, people are looking at equities more than when they are more worried about inflation and growth prospects.”