Financial intermediaries drawn to equity funds

Despite the volatility of the markets in recent weeks, nearly a third of financial intermediaries are choosing to invest more in equity funds, according to a new survey.
SEP 26, 2008
By  Bloomberg
Despite the volatility of the markets in recent weeks, nearly a third of financial intermediaries are choosing to invest more in equity funds, according to a new survey. Twenty-nine percent of the 174 financial intermediaries surveyed by New York-based kasina LLC last Wednesday and Thursday were investing more in equity funds, compared with 24% who were choosing to invest less and 47% who were investing at the same level or concentrating on other securities products. “It is positive to see that advisers are not fully retreating from the markets,” kasina chief executive Steven Miyao said in a statement. However, many financial intermediaries were choosing to invest less in both variable annuities and alternative products like hedge funds. Sixteen percent were investing more in variable annuities, compared with 31% who were investing less in these products, with the rest of those surveyed standing pat. When it comes to alternative products, 14% of financial intermediaries were investing more and 31% were investing less.

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