Investment - Articles - Predictions on asset class performance over next 12 months


Research by Aegon, carried out among over 200 financial advisers highlights adviser’s views on the asset classes they expect to perform best and worst for clients over the next 12 months. This research comes as investors face having to navigate a complex range of factors including trade tension and growth concerns, with many questioning if the longest bull market in history could be coming to an end.

 UK equity funds have seen record outflows since the Referendum in June 2016 but despite this, a high number (14%) of advisers put this asset in their predicted top three best performing asset classes. Similarly, despite recent falls, US equities (22%) and emerging market equities (15%) were also ranked highly by advisers.

 While cash may be viewed by some as a safe haven during times of volatility, research shows that advisers expect cash (24%) to be the worst performing asset over the next year. Gilts are ranked in second place (19%) as the asset class advisers predict will perform the worse, with corporate bonds in third place (8%).
 

 The mixed predictions of advisers reflects current market volatility and political instability, with a high proportion (22%) of advisers unsure of the asset class they would predict to generate the best returns over the next 12 months.

 Research shows that views on the asset classes expected to generate the best returns for clients differs depending on the advisers average client portfolio value. For advisers whose clients’ have an average pot of £200,000 or more, Asia Pacific assets are predicted to be the fourth highest performing asset at 11%, compared to the 4% figure for advisers whose clients’ pot is on average under £100,000. Similarly, advisers whose clients’ have an average pot of under £100,000 are more likely (6%) than advisers whose clients’ have an average pot of over £200,000 (2%) to expect Japanese equities to perform well in the next 12 months.

 Nick Dixon, Investment Director at Aegon, said: “In this highly volatile investment landscape, advisers are right to question whether the longest bull market in history could be coming to an end. When it comes to investment decisions, advisers and investors are having to face a number of concerns head on. This includes the impact of geopolitical stress on emerging markets, equity valuations, and potential impact of Brexit on UK equities. However, our research shows that advisers remain level-headed in the face of a very fickle market. Advisers are right to remain focused on long-term returns, diversification, and avoid reacting to fast moving market conditions.”
  

Back to Index


Similar News to this Story

Inheritance Tax raises almost GBP6 billion in 8 months
December’s update from HMRC shows that Inheritance Tax (IHT) receipts reached £5.7 billion through the first two-thirds of this financial year (April
PIC completes first Mosaic buyin with GCB Pension Fund
Pension Insurance Corporation plc (“PIC”) has concluded its first full scheme buy-in within Mosaic, PIC’s streamlined service for pension schemes with
Airways Pension Scheme complete longevity hedge with MetLife
The Trustees of the Airways Pension Scheme (“the Scheme”), Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc., (“MetLife”) and Z

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.