|
Dubai: Wealthy investors in the UAE are most likely to consider switching their fund manager in response to volatility, while many of them consider the current global financial turmoil as an opportunity to diversify their portfolios, according a survey by Barclays and Economist Intelligence Unit (EIU).
According to the report titled 'Breaking the Mould: A question of personality', published by Barclays Wealth and the EIU, 43 per cent of the high networth respondents from the UAE said they are more likely to increase the level of risk in their portfolios - indicating that they regard the current environment as one of opportunity rather than a hindrance.
The survey results show that in a period of increased economic volatility, 48 per cent of respondents from the UAE are likely to switch their fund managers, while wealthy investors from the US (23 per cent) are least likely to select a new manager.
"In the past few years, the wealthy in the region have become more demanding; expecting higher than average levels of investment performance and service. The insights into the behaviour of investors, gained through these studies, demonstrates yet again the importance of the expert advice of private bankers, especially during turbulent times," said Soha Nashaat, managing director and head of Barclays Wealth, Middle East and North Africa.
UAE's rich are most likely to increase the level of risk in their portfolio in response to volatility, followed by investors from India and China.
"It is becoming increasingly crucial that wealth advisers fully understand the psychological and emotional factors that influence the investment decision-making process, ranging from an investor's reaction to volatility to the impact of gender on the investment process.
"By gaining these critical insights, we can build portfolios for our clients that reflect their individual personalities," said Nashaat.
More than half (51 per cent) of investors say that they plan to analyse their portfolios on regularly. A further 51 per cent are more likely to monitor a specific investment on a daily or weekly basis, rather than the performance of their overall portfolios (41 per cent).
The research suggests that in times of volatility, investors become preoccupied with the performance of their specific stocks, rather than their portfolios.
This can cause investors to take decisions that may make sense with reference to a specific asset, but are less rational in the context of the overall portfolio.
"In recent years, the wealthy in the UAE have become more discriminating and demanding in their expectations about performance," said Sandy Shipton, executive director of wealth management at the Dubai International Financial Centre.
"They expect higher than average levels of performance and service and that's probably why many would take action in the face of volatility."
|
