A recent survey conducted by Information Management Network (IMN), global organizers of institutional finance and investment conferences, found that 93.3% of respondents believe market volatility will remain the same or increase in 2012, indicating that another year of instability is universally anticipated.
Despite the expected volatility, 87% of respondents cited a consistent or increased risk appetite in the next six to 12 months. Additionally, 54% do not plan to alter exposure to global markets and 39% actually plan to invest a bigger part of their portfolio internationally. Regardless of the current speculation over the fiscal future of certain European nations, only 2% plan to decrease global exposure.
“I am encouraged by investors’ willingness to increase their exposure to the market. It suggests that professional investors are able to look beyond near-term volatility and seek attractively priced markets,” said Jack Ablin, Chief Investment Officer of BMO-Harris Private Bank in Chicago.
Additional survey findings include:
– The majority of respondents (71%) feel more prepared to combat exposure now than they did in 2008.
– 62% of survey respondents use alternative assets citing a combination of hard assets (48%), hedge funds (36%), private equity (36%), as well as commodity futures, real estate, natural resources, infrastructure and 40 Act funds.
– Not surprisingly, most respondents expect that market volatility and global economic conditions will have the greatest impact on portfolio strategy (66%), followed by changing regulatory requirements (11%) and customer demand for control and transparency (5%).
Survey respondents included plan sponsors, endowments, foundations, health-care organizations, non-profit investors, institutional investors, fund managers, academics, index and service providers, traders, investment consultants, financial advisors, planners and RIAs, as well as registrants for the 16th Annual Super Bowl of Indexing conference.