Monday, Sep 26, 2016
Dubai
Half of the investors in the UAE suggested an optimistic view of their investments in 2016, a far cry from 2015, when they received lower return, even though oil prices remained a top concern, a survey conducted by Old Mutual International, and Quilter Cheviot, Investment Management firm, revealed.
Nine out of ten investors surveyed felt that they have become more risk aware in the last 12 months and 64 per cent of respondents said they now have a good or strong understanding of risk, which is a clear indication that investors are becoming more knowledgeable and more market aware.
This increased understanding and awareness of risk is also directly affecting their appetite for it in their portfolios. 89 per cent recognised the importance of matching investments to their individual appetite for risk.
“Attitudes of investors based in the UAE are changing. The increased volatility in global markets and a fluctuating oil price has directly affected attitudes and habits, with investors now having an increased level of understanding of investment risk and more specific requirements than ever,” Brendan Dolan, Regional Director for Old Mutual International, Middle East and Africa said in a statement.
“This volatility and deeper understanding of long-term investments has resulted in a more informed approach to risk and reward that has seen many investors adopting more conservative approaches to their portfolios, with many investors focusing on protection against loss rather than growth,” he added.
However, among investors, the performance expectations still remain high, suggesting that many see the current market situation as an opportunity rather than a threat.
The investment research was aimed specifically at investors living in the UAE who have a minimum of $50,000 invested and use the services of a professional, such as a financial adviser or investment manager, to invest in the stock market.
Staff Report
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