FTAdviser.com

Advertising

Nick Smith, managing director of Allianz Global Investors Europe, said 62 per cent of advisers said it was necessary for investors to increase risk appetite to maintain or increase capital.

But he said investors' risk appetite had fallen off in the past six months, following the recent turmoil in financial markets.

“This has been an age-old conundrum in the world of investment," he said. "However, the current economic situation has amplified this."

He said low rates of interest on bank accounts had forced investors to turn to advisers to help them generate income, with many advisers looking overseas for the best equity income opportunities.

The survey found 30 per cent of respondents believed Europe was the best region to find income given the current environment.

Mr Smith said: “Allianz Global Investors believes European dividends offer a distinctive opportunity for those who are looking for ways to generate income, and it is positive that one-third of advisers recognise this.

"The continent offers the opportunity to access more than 230 large-cap companies yielding 4 per cent or more, which is three times more than in the UK alone."

According to the survey, 30 per cent of advisers are concerned about the possibility of further financial scandals this year, which could further harm the recovery.