Equities are seen as the most attractive asset class over the next three months, being selected as the top choice by over a third (34 per cent) of respondents, according to the findings of the latest Risk Rotation Index by NN Investment Partners.
The research shows equities as the most popular asset class followed by real estate (16.5 per cent) and government bonds (13.6 per cent).
Healthcare is viewed as the most attractive sector at present, being selected by 51 per cent of respondents. This was followed by consumer staples and technology (both 29 per cent) and utilities (24 per cent). Only 9 per cent of respondents view telecoms favourably at present.
Valentijn van Nieuwenhuijzen (pictured), Head of Strategy, Multi-Asset at NN Investment Partners, says: Thanks to the fading of the Greek risks we recently upgraded Eurozone equities from neutral to a small overweight. In the meantime, on the behavioural dynamics side we observe a continuation of flows into Europe. This underpins our thesis that investors favour those regions where markets are driven by accelerating earnings growth and loose monetary policy. Positive drivers are the cyclical momentum, valuation and an improvement in price momentum.
“Real estate remains the biggest beneficiary of the search for yield from institutional and private investors. Underlying fundamentals remain supportive among real estate: stronger labour data, better consumer confidence and the positive impact of oil prices on retail sales.”