uae investors sacrifice returns for safety

Fear is driving investors in the United Arab Emirates to sacrifice performance in favour of preserving capital, according to a study published today.

uae investors sacrifice returns for safety

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Natixis Global Asset Management surveyed more than 250 individual investors in the UAE as part of a wider global survey into investor behaviour which surveyed more than 5,300 people.

The company, which has an office in the Dubai International Finance Centre, found that two-thirds (66%) of investors said they will take minimal risk, even if it means sacrificing returns. A 51% majority said the fear of losing money due to market volatility is the main influence limiting their levels of investing and saving.

Furthermore, only 35% of respondents said they were keen to make up for past losses and the same percentage said they can endure higher levels of risk than a few years ago.

Alternative investment strategies

Natixis suggests a solution to the problem could be greater use of alternative strategies and Jamal Saab, managing director, head of MENA at Natixis Global Asset Management, said there is “a clear need for more information and awareness around alternative investment strategies”.

According to the company’s research, more than two thirds (68%) of investors said they need to learn more about alternatives before investing in them, with 30% believing the alternative strategies are for wealthy or institutional investors only.

Hervé Guinamant, president and chief executive officer, Natixis Global Asset Management – International Distribution said: “Among the more than 5,000 investors we surveyed around the globe, we 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.”
 

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