According to a recent survey of over 250 individual investors in the United Arab Emirates, Natixis Global Asset Management (an International Finance Centre based in Dubai) found that 65% were opting for minimal risk investments even if it meant they were sacrificing healthy returns.
Over half of these investors cited the fear of losing money due to market instability as their deciding factor when making their choice of investment, inevitably sacrificing performance in favour of preserving capital. The research highlighted the admission by investors that they would welcome greater understanding of alternative investments and what they can offer to them, with many still under the misconception that alternative strategies are predominantly suited to institutional or higher wealth investors.
In light of this information, ICI takes the view that more research and subsequent use of alternative investments should be the way forward.
Among the investors they surveyed around the globe (over 5,000), they found some striking similarities. Facing low rates, high correlations among asset classes, and fear of loss due to market volatility, investors the world over are worried about generating enough income in retirement. What investors want is a new approach that puts risk first and helps them build portfolios that can better withstand volatile market movements so they can stay invested and meet their savings goals.
ICI has reacted to these very concerns by focusing on safe, secure, fixed return alternative investments for their investors, which will also preserve the capital of their clients.