Risk assets and emerging markets are more attractive to investors now compared with six months ago, according to a survey by Schroders.
Of the 90 intermediary clients from across Europe and the Middle East who were interviewed, 55% were overweight and 15% underweight in risk assets (equities, commodities and corporate bonds) say Schroders.
The same survey six months ago reported 17% were overweight and 46% were underweight, highlighting a shift in investor sentiment.
Head of Schroders' global intermediary force Richard Mountford says: "Risk appetite has returned to markets over the summer and exposure to higher risk assets has increased.
"This has been reflected recently by the equity rally and narrowing bond spreads and also by the strong sales of Schroders' Euro Corporate Bond and Commodity funds, two of our top selling funds YTD."
Expectations are also high for emerging market equities and emerging market debt, with the majority of intermediaries citing them as their top asset allocation recommendations by the close of 2009.
Alan Conway, head of emerging market equities at Schroders, says: "Emerging markets have also recovered strongly and are once again outperforming the developed markets.
"We believe that they continue to offer attractive investment opportunities as economic fundamentals for many emerging countries remain much stronger than for the developed world, with superior GDP growth potential and lower levels of debt.
"Moreover, we expect improved global growth in the coming months and that the emerging economies will recover quicker than the developed world."
The survey also suggests over half expect a W-shape recovery and 60% consider inflation, rather than deflation, to be the greater threat.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created