Investors are slowly regaining their appetite for moderate risk
HSBC Asset Management has observed a gradual increase in investors' appetite for moderately risky instruments in the past year.
Sandra Lee, director, head of retail, marketing and product development for HSBC Asset Management, says along with improved general sentiment toward investment markets, a 'healthy portfolio diversification process' is under way.
'At the beginning of the year, investors in general were very risk averse,' she says. 'They were holding a lot of cash. In the past year, they have moved into high-yield products like guaranteed products and bond funds. Since March, what we have seen is an improvement in investor sentiment and a moderate increase in risk appetite.'
In the bond sector last year, HSBC saw good demand for United States treasury products. This year, there have been strong inflows into Asian bond funds.
'People like the Asian growth story but want to capture it in a more high-yield and stable manner,' Ms Lee says.