Rising demand for multi-asset, ESG and emerging markets funds

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Confidence in the global economy is now at its highest level since the start of the pandemic, according to the latest Investor Tracker from Boring Money – a quarterly survey of more than 1,500 individual investors.

Some 58% of investors polled said they plan to increase the amount invested in their portfolios, with multi-asset, sustainable and ethical investments and emerging market funds experiencing the greatest increase in demand.

When asked how they plan to invest over the next six months, some 19% of investors said they plan to increase their holdings in funds of funds and multi-asset vehicles, up from 13% in the first quarter of the year.

Funds defined as ethically invested saw a larger jump from 14% to 23%, while funds classified as sustainable jumped from 20% to 26%.

Cocktail of uncertainty

“We’re starting to see some interesting patterns in terms of future sustainable investing intentions,” said Holly Mackey, Managing Director of Boring Money.

“Although covid-19 initially focused minds on the need to ‘build back better’, as the cocktail of continued uncertainty and job insecurity set in, people were in no mood to take risks or do anything to threaten returns, ”she added. . “This quarter, sentiment is stronger and interest has picked up.”

For future purchase intentions to remain high when it comes to sustainable investing, Mackey said there has to be a combination of positive sentiment about the economy in general and a desire to take action to make the world a better place.

“This will likely remain the case until we convince a less confident investor that this style of investing doesn’t have to go hand in hand with supposedly lower returns,” she said.

Intentions of shares and bonds

Elsewhere, the number of investors surveyed planning to increase their allocation to emerging market equities rose four percentage points to 24%.

However, despite a strong performance this year, appetite for UK equities has declined slightly, with just over a third (35%) saying they plan to buy funds focused on the domestic market, which has fallen slightly. ‘one percentage point from the first quarter.

Away from equities, although they say they are more confident in their outlook, 17% of investors said they plan to increase both their exposure to corporate bonds (up from 11%), while those who wish investing in government bonds rose two percentage points to 16%. .




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