58% keep the same proportion of cash investments in their portfolio

47% say market volatility undermines ability to reach investing goals

68% say they need to learn more alternative investment products

Dubai, 17th October 2012 - According to the latest survey results released by Natixis Global Asset Management, one of the 15 largest asset managers in the world based on assets under management, UAE investors have little appetite for increasing risk and choose to keep the same proportion of cash investments in their portfolio. Market volatility has dampened confidence and created apprehension about meeting savings and retirement goals. As a result, more investors are turning to new approaches to investing and to their financial advisors for answers, but knowledge of alternative investment strategies remains low.

These are among the findings of a new study of 251 individual UAE investors commissioned by the Durable Portfolio Construction Research Center of Natixis Global Asset Management. The survey is part of a larger global study of 5,319 investors in 14 countries in Europe, South America and the Middle East, as well as Australia, South Africa, the U.K. and the U.S. More information about the global survey is available at www.durableportfolios.com.

Jamal Saab, Managing Director, Head of MENA at Natixis Global Asset Management said, "Investors across the Middle East are more focused on risk than ever before, and they are looking for new approaches to investing that put risk first and help manage volatility in their portfolios. There is a clear need for more information and awareness around alternative investment strategies, and investors are turning to their advisors for answers. The concern for a significant percentage of UAE-based individual investors is making sure that their strategy will provide sufficient income for their retirement. To get there, investors need to diversify and to construct more durable portfolios that can withstand today's volatile markets."

UAE investors worry about meeting savings and retirement goals, yet a majority (58%) report that they are not reducing the proportion of cash investments in their portfolio.  

Half of UAE investors agree that their expectations for future investment returns have been eroded by market volatility and only 22% are highly confident that their investment approach will provide a steady income in retirement, with 63% being moderately confident. Four in 10 (39%) of UAE investors are concerned about outliving their assets in retirement. Half of the respondents have noted that these expectations have been caused by market volatility, which is undermining their ability to reach their investing goals.  

Investors in the UAE are focusing on preserving capital rather than increasing returns.  

Only four in 10 (40%) agree that the level of investment risk they are willing to take is increasing, and 66% of investors assert that they will take only minimal investment risk, even if it means sacrificing

returns. A majority (51%) say that the fear of losing money due to market volatility is the main influence limiting their levels of investing and saving. Similarly, just 35% of all respondents say they are eager to make up for past losses and the same percentage says that they can endure higher levels of risk now than they could a few years ago.

Spillover from the Euro crisis and international political turmoil impact investment decisions; majority of UAE individual investors prefer safety over performance

A majority (57%) of all investors in the UAE, including 70% of women and 53% of men, say that if forced to choose, they would take safety over performance, with just 36% claiming they are willing to sacrifice return for security. Half of the investors interviewed said they are concerned about the European debt crisis.

On a positive note, approximately two-thirds (65%) claim they seek a balance between risk and return when investing, and 67% pay more attention to risk now than ever before.

A significant majority of investors in the UAE believe their investment approach is on track, but more are looking to financial advisors than ever before.

Approximately four in five (82%) investors are confident their current investment approach is able to protect their investments from periods of market underperformance and a similar proportion of 83% claim they are moderately (67%) or highly (16%) confident their current investment approach will protect their investments from dramatic swings in value. More notably, 83% report they are confident that their current investment approach is able to generate strong performance.

Yet a majority of investors (54%) are revealing their expectations to their advisors more than ever before and 61% are more interested in discussing risk with their advisor than ever before. 

Strong call for more knowledge of alternative investment products for UAE investors

More than two-thirds, or 68% of investors say they need to learn more about alternatives before investing in them. There is a clear need for more information and education on alternative investment products, as these are currently seen as risks due to a lack of awareness. Only 30% of investors believe that alternatives are for wealthy investors or institutions only while 45% percent of respondents say they have never discussed alternative investments with their adviser.

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."

Methodology

The online quantitative survey of 251 individual investors in the UAE was conducted in May and June of 2012 by CoreData Research. The UAE study was part of a wider survey of 5,319 individual investors in 14 countries in Asia, Europe, South America and the Middle East, as well as Australia, South Africa and the U.K. Individual investors were divided by level of investable assets: mass market ($200,000 to $300,000); mass affluent ($300,000 - $500,000); emerging high net worth ($500,000 -$1 million); and high net worth (more than $1 million). Respondents were also divided among generations: 18-29 years old; 30-46 years old; 47-66 years old; and 67+ years old. A copy of the global survey highlights is available at www.ngam.natixis.com/pressroom.

About Natixis Global Asset Management, S.A.

Natixis Global Asset Management, S.A. is one of the 15 largest asset managers in the world based on assets under management.1 Its affiliated asset management companies provide investment products that seek to enhance and protect the wealth and retirement assets of both institutional and individual investor clients. Its proprietary distribution network helps package and deliver its affiliates' products around the world. Natixis Global Asset Management, S.A. brings together the expertise of multiple specialized investment managers based in Europe, the United States and Asia to offer a wide spectrum of equity, fixed-income and alternative investment strategies.

Headquartered in Paris and Boston, Natixis Global Asset Management, S.A. has assets under management totaling $711 billion (€560 billion) as of June 30, 2012.2 Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.'s affiliated investment management firms and distribution and service groups include: Absolute Asia Asset Management; AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Private Equity; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Global Investors; Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Natixis Asset Management; Natixis Multimanager; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; and Vaughan Nelson Investment Management.

1Cerulli Quantitative Update: Global Markets 2012 ranked Natixis Global Asset Management, S.A. as the 13th largest asset manager in the world based on assets under management as of December 31, 2011.

2Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC's definition of 'regulatory AUM' in Form ADV, Part 1.

Press Contacts:
CAPITAL MSL
UAE
Campbell Hood
Tel: +971 4 427 6449
campbell.hood@capitalmsl.com

Natixis Global Asset Management
Boston
Wesley Eberle, Global Public Relations
Tel: 617-827-4229
wesley.eberle@ngam.natixis.com

© Press Release 2012