Aegon Adviser Attitudes Report 2021

Fixed income still seen as valuable diversifier Fixed income and cash have come under fire this year due to continuing low yields and almost negligible interest rates, so we asked advisers whether they had been looking for alternatives to these asset classes. Despite these issues, the vast majority ( 71% ) still see fixed income and cash as providing valuable diversification within portfolios. However, a significant minority ( 34% ) have sought alternatives to fixed income in search of better yields this year, including listed infrastructure, commodities, derivative-based strategies and property. It's likely that they are recommending these strategies to their more investment-savvy and less risk averse clients – those prepared to accept some increased risk and complexity in the hope of better returns. A return to strong economic growth as the Coronavirus crisis abates, may see rising yields on fixed income and authorities begin to normalise interest rates. If that is the case, over time, we may see those advisers returning to more traditional income sources. 71% of advisers still see fixed income and cash as valuable diversifiers Aegon adviser attitudes report 2021 31

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