The survey found that 33% of institutional investors see an emerging markets crisis as the highest risk to their portfolios, while 25% fear a "black swan" event. It also showed 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 were viewed as the most attractive fixed income sectors. The survey aimed to gauge how investors' appetite for risk has changed and their views on inflation risk and the most attractive geographical regions for equity investment.

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%