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Volatility is top concern

Investors are more concerned about volatility than the need for long-term growth, according to a Threadneedle report .

The survey asked 411 IFAs what matters most to their clients and 58 per cent say volatility of returns while 36 per cent say the need for long-term growth.

Twenty-three per cent indicate that income security is a major concern while 12 per cent say clients fear the prospect of a double-dip into recession.

Whitechurch Securities senior analyst Ben Seager-Scott says: “The survey rings true. Part of the issue is that there is so much mixed newsflow that investors are finding it difficult to see through the noise.”

Informed Choice managing director Martin Bamford says: “The research from Threadneedle is interesting. In the main, our clients have been relatively unconcerned with the volatility of their portfolios, even during the most turbulent times of the past few years.

“Volatility is certainly an important part of risk management but where investors are prepared to leave money invested for the long term, it is unlikely to concern the majority.”

Threadneedle also asked IFAs where they believed UK equities would be in 12 months’ time and just 1 per cent say they would be down by more than 15 per cent from current levels, suggesting that adviser sentiment is positive.

Just over half say UK equities would be up 10 per cent or more and 12 per cent say they could rise by 15 per cent or more.

Eighty-eight per cent of IFAs say they will recommend global equities to their clients over the next year and 85 per cent will push emerging market equities.

Eighty-three per cent say they will push UK equities and 44 per cent will promote government bonds.


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