Reflecting market conditions, UK investors averse to excessive risk

Recent fiscal uncertainty has struck fear into the hearts of many investors - a trend that has slowed financial activity in recent months and stalled the economic recovery. In Europe, the threat of a massive financial crisis has resulted in investors being more cautious with credit decisions, threatening to ripple across North American markets as well. A survey released this week by Natixis Global Asset Management found individual investors in the United Kingdom are unwilling to sacrifice financial security for returns, even though they are keenly aware of risk conditions. Nearly one-third of investors claim to be very concerned about the prospect of slower economic growth in the UK, and 84 percent agree with the statement, "the more risk I take, the more I could lose." "The financial crisis has left an indelible mark on investors, and many are now more actively monitoring, managing and seeking to mitigate risk in their portfolios," said John Hailer, president and CEO of NGAM. "But the pendulum may have swung too far in terms of risk aversion," Hailer added, "causing individual investors to shun investment options that are designed to grow portfolios while minimising risk in volatile environments."