Although inflation fears have played a part, other factors have made a contribution.
“The plainer, but more compelling, argument for recent market movements is that, first, risk appetite was extended across asset classes (investors were simply too complacent on risk assets), and, second, that the downturn which ensued was exacerbated by ‘hot money’ sales and an unwinding of positions,” says Paul Niven, head of asset allocation at F&C.
Despite an improved performance recently, investors are continuing to withdraw money from equity funds, with emerging market equity funds the hardest hit.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
