Dubai – Mubasher: UAE investors are more aware of the significance of choosing investment portfolios that align with their risk comfort level, new research has found.
Nearly 81% of respondents to the research conducted by the Old Mutual International and Quilter Cheviot Investment Management affirmed that this was the most important factor when investing their finances with a discretionary fund manager (DFM), compared to 73% in 2017.
The survey also showed that 65% of UAE investors prefer DFMs that have strict controls in place to protect them against investment losses, up from 58% in 2017.
Other significant factors that UAE investors look for include trusted and established brands that have a proven performance track record in delivering growth with 54% of respondents saying this was something they focused on, against 47% in the prior year.
In addition, 44% of UAE investors said that they look for DFMs that can create tailored portfolios to meet their investment needs, while 39% prefer DFMs that have access to industry leading global investment research.
Emirati investors are also increasingly averse to risk as 22% of respondents said they were risk averse, up from 15% in 2017, whereas 44% see themselves as risk neutral, down from 53% in the prior year.
Economic risks attributed to stagnation, among other factors, can be “alleviated by investing with a DFM,” said Mark Leale, head of Quilter Cheviot Investment Management’s Dubai representative office.
“By actively managing investments and investing in a range of diverse asset classes, [Quilter Cheviot Investment Management’s] investment managers are able to respond to market changes and minimise risk,” Leale noted.
