Advisers tempted to return to equities amid volatility

Advisers tempted to return to equities amid volatility

The latest FTAdviser Despatches poll indicates advisers are being tempted to increase the allocation to equities in client portfolios, even as markets have fallen.

The poll, which was conducted online, found that 42 per cent of respondents intend to increase allocations to equities across all client portfolios, while a further 38 per cent intend to do so for the clients with a higher risk tolerance.

Only the remaining 19 per cent of respondents are averse to increasing allocations right now.

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The poll was conducted between 3 October and 18 October, and came during a period when the market was particularly cautious on equity outlook as a consequence of hope around the US Federal Reserve moderating its interest rate rises faded, while events in Ukraine offered scant comfort for any investor. 

But while volatility has been very high, it may be that advisers who have clients with a very long-term time horizon are keen to see if they can pick up bargains in the current climate.