UAE investors increasingly aware of the importance of selecting investment portfolios that align with their risk levels: report

Dubai: New research* from Old Mutual International and Quilter Cheviot Investment Management shows that UAE based investors are increasingly aware of the importance of their investment portfolios aligning with their risk comfort level.

81% of respondents said this is the most significant factor they look for when looking to invest their finances with a  Discretionary Fund Manager (DFM), up from 73% in 2017.

Other important attributes that UAE investors look for in DFMs are that tight controls are in place to protect them against investment losses (65% versus 58% in 2017); while over half (54%) of respondents said they are looking for trusted and established brands that have a proven performance track record in delivering growth, compared to 47% last year.

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Mark Leale, Head of Quilter Cheviot Investment Management’s Dubai representative office, said: “Issues such as stagnation in the world economy and political challenges across the globe are clearly playing on the minds of investors, but this risk can be alleviated by investing with a DFM. By actively managing investments and investing in a range of diverse asset classes, our investment managers are able to respond to market changes and minimise risk. They are in regular contact with clients to ensure that their portfolio aligns with their risk comfort level, and only make decisions with a long-term view in mind.”

The survey also showed that UAE investors place significance on DFMs that can create tailored portfolios to meet their investment requirements (44%), and also DFMs that have access to industry leading global investment research (39%).

Greater numbers of investors are also more averse to risk than previously. Nearly a quarter of respondents (22%) said they are risk averse, compared to 15% in 2017; while 44% now consider themselves risk neutral, down from over half (53%) of respondents in 2017. This sense of investor unease is further reflected in an increase in those checking investments monthly or quarterly (75% vs 68% in 2017).

Paul Evans, Head of Region, Middle East & Africa, Old Mutual International, commented: “Managing risk is a key part of the investment process. Controlling volatility, and managing the downside, is all part of risk management and it is therefore crucial that the portfolio is correctly matched to the risk profile of the investor and that this is reviewed on an ongoing basis.”

Mark added: “We have seen increasing demand for tailored portfolio services from investors who have high investment expectations, but also recognise the importance of having them managed in a secure way. Having access to research from our 22 strong in-house analyst team means our investment managers can invest in a diversified global portfolio for clients, helping to protect them against losses as well as achieving their investment goals.” 

*Old Mutual International and Quilter Cheviot investment and retirement research, August 2018. A targeted piece of research, aimed specifically at investors living in the UAE (mainly Dubai and Abu Dhabi) who use the services of a professional to invest in the stock market. Investors needed to have a minimum of US$50,000 invested. 130 responses were received in total and were a representative cross section of those living in the UAE (expats, NRIs and GCC Nationals).

Investors should remember that the value of investments, and the income from them, can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results.

Any mention of a specific security should not be interpreted as a solicitation to buy or sell a specific security.

For more information please contact:
Sophie Gorman (Quilter Cheviot) 
sophie.gorman@quiltercheviot.com 
0207 150 4246
Neha Popat (Quilter Cheviot) 
neha.popat@quiltercheviot.com 
0207 150 4366

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Quilter Cheviot

Quilter Cheviot, part of Quilter plc, is one of the UK’s largest discretionary investment firms and can trace its heritage to 1771. The firm is based in 12 locations across the UK, Jersey and Ireland and has total funds under management of £24.4bn (as at 30 September 2018). Quilter Cheviot focuses primarily on structuring and managing bespoke discretionary portfolios for private clients, charities, trusts, pension funds and intermediaries.

Quilter Cheviot Limited is registered in England with number 01923571, registered office at One Kingsway, London, WC2B 6AN, England. Quilter Cheviot Limited is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey and is regulated under the Financial Services (Jersey) Law 1998 by the Jersey Financial Services Commission for the conduct of investment business in Jersey and by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 to carry on investment business in the Bailiwick of Guernsey; is regulated by the Dubai Financial Services Authority as a Representative Office (and its business name in Dubai is Quilter Cheviot Limited (DIFC Representative Office)); and has established a branch in Dublin, Ireland with number 904906 and is regulated by the Central Bank of Ireland for conduct of business rules. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.

About Quilter plc:
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.

© Press Release 2019