Major investors are changing their views. Investment conditions have changed fundamentally in a world without interest, and investors such as pension funds and insurance companies are trying to adjust to the new reality.
This is only too clear in the results of a survey of 212 institutional investors with total assets of more than €6 trillion ($6.6 trillion), conducted by Union Investment, the investment arm of Frankfurt-based DZ Bank.
In a comparison among countries, German investors showed the greatest aversion to losses, with about 82 percent of German respondents stating that this was the most important issue to them. In fact, it turns out that Germans are European champions when it comes to risk aversion.
Such aversion is significantly lower in countries where investors have a stronger affinity for equities, such as the Netherlands and Great Britain. And the German share is also lower than it was in last year’s survey, which is why Union executive board member Alexander Schindler said: “Many institutional investors are apparently rethinking their capital investments and adjusting to investment reality.”