The results of MHP’s 2011 Asset Management survey on the future of the investment industry are out - and the results show that investor confidence in stock and shares is streets ahead of other asset classes, despite market volatility.
The survey, undertaken by 88 of the European investment industry’s leading figures, and featured on the front page of this week’s FTfm, revealed that nearly half of respondents believe equities will offer the most compelling investment returns over the next 12 months, almost three times more than the second-highest rated asset class, hedge funds (16%), followed by private equity (12%) and fixed income (10%).
There is some optimism amongst investors about the Eurozone’s economic outlook, with 64% seeing significant upside from the Eurozone crisis, particularly with a stronger fiscal union in Europe. Multi-strategy asset management companies will emerge as the most successful, post-crisis, according to 49% of respondents, with 20% voting in favour of the boutique firm.
Emerging market equities received the highest vote (34%) in terms of the emerging markets product most likely to offer the best investment returns over the next 12 months. This compared to 30% for multi-strategy and 17% for emerging market currency. In contrast, just 9.3% favoured emerging market debt.