The document summarizes the results of a risk rotation survey conducted in December 2015 among 104 institutional investors. It shows that 33% of investors saw an emerging market crisis as the highest risk to their portfolios, while 25% also feared a potential "black swan" event. The survey also found that healthcare, technology, and consumer staples were seen as the most favored equity sectors, while US investment grade, US high yield, and euro investment grade fixed income were viewed as the most attractive fixed income sectors.

1. 42% 35% 33%Emerging marketsUnited KingdomUnited States of America
Q3 2013 Q4 2013 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q4 2015
Increase | No change | Decrease
0
50
100
How have investors’ appetite for risk changed?
Most favoured equity sectors
Predicted inflation risk in the United States,
United Kingdom, Eurozone and Japan
Healthcare
53.3%
Technology
46.7%
Consumer staples
38.9%
Financials
35.6%
Utilities
21.1%
Energy
23.3%
33% of institutional investors fear
a possible EM crisis to be
the highest risk to their portfolios
25% fear this possible EM
crisis is followed by a
“black swan” event
1.80%1.93% 1.45% 1.30%
NN Investment Partners
Risk Rotation Survey
December 2015
© NN Investment Partners. NN IP survey amongst 104 investment professionals in December 2015.
The most attractive geographical regions for
equity investment in terms of risk vs. profit
What are the most attractive fixed income sectors?
46%
US Investment Grade
34%
US High Yield
39%
Euro Investment Grade
25%
EMD Corporates
55.7%
32.9%
11.4%
42.2%
38.6%
19.3%
41.4%
45.0%
13.5%
29.2%
40.4%
29.8%
36.5%
36.5%
27.0%
29.6%
47.0%
16.5%
28.3%
52.5%
18.3%
28.8%
55.8%
15.4%