European Investor Group - Retail Fund Investment and the US Subprime Crisis: Market Reactions Lead to New Opportunities

Berlin, 30.01.2008 - Retail armamentarium investors are adverse a crisis of aplomb consistent from the knock-on accoutrement of the problems in the US subprime mortgage market, according to investment professionals in Europe.

Between October 2007 and January 2008, the European Investor Group and Metrinomics accept conducted about 900 interviews with distributors in the European retail armamentarium industry. During these interviews, respondents from 12 countries were asked “What aftereffect has the US subprime crisis had on the behaviour and attitudes of your clients?” Hans J. Schmolke, CEO of Metrinomics, summarises investors’ reactions: “Risk and befalling are already afresh two abandon of the aforementioned coin. Disappointment and damaged aplomb will advance to new articles and investment strategies that cope with present bazaar challenges.”

Responses to this catechism in the UK appearance that the British are the a lot of acquainted of the dangers adverse their investments. All the British distributors questioned cited an added akin of attention a allotment of their audience but there seemed to be little panic. One UK adviser summed it up as follows: “They [the clients] are added afraid and allurement for added advice. Whilst there has been little circling in portfolios yet, there is a abridgement in new money.” Despite this “more cautious” approach, some audience were still diversifying their portfolios and even axis their absorption to arising markets.

In Germany and Switzerland, the accoutrement on applicant behaviour were not widespread. As one Swiss benefactor commented “There’s a acumen here: The audience who had invested in the afflicted markets are actual unsettled, admitting the blow are absolutely uninterested”. Though, audience who were afflicted reacted strongly. Slumping armamentarium sales and withdrawals from funds were a lot of generally appear by Swiss distributors. Other investors seemed to be carefully accustomed on as normal.

In Italy, area the appear accoutrement of the US subprime bazaar accept been the atomic astringent in Europe, tensions were still said to be active high. Several retail armamentarium distributors abhorrent the Italian media for the unrest. A archetypal animadversion was “We’ve accomplished a abrupt about-face in clients’ accident profiles: A flight to quality. The alarm has been triggered aloft all by the media, after acceptable reason.” Distrust of the cyberbanking arrangement in accepted was aswell a lot of apparent in Italy. One adviser said: “It was absolutely unexpected; AAA classified investments included subprime securities. There was a abridgement of accuracy in the products.”

The accepted agency amidst armamentarium investors in all countries was a acute admiration for security. As addition benefactor commented, “The crisis has a big access on the market. Some audience are about accessible to agitation sell, which is no best alive and there is a accepted accident of assurance in the cyberbanking industry. Emotionally speaking, there is abhorrence and atheism accumulated with wariness with commendations to approaching investments.”

On a added absolute note, one of the distributors questioned cited added alacrity a allotment of investors: “Our audience accept become added active. They are aggravating to acknowledge by affairs on a downturn. This is decidedly axiomatic in the armamentarium sector. They’ve become arrangement hunters.” Bargain hunters aside, the bazaar for low accident retail armamentarium articles is acceptable to grow, portfolio about-face will become added burning and admiral will abide to seek out college accident areas of outperformance like arising markets.

Press contact:

Heather Reeve-Black
Account Manager
Metrinomics GmbH
Schlesische Str. 26
10997 Berlin
Email: h.reeve-black@metrinomics.de
Phone: +49 30 695 171 0
Fax: +49 30 695 171 33
www.metrinomics.de
www.e-i-group.com

About the European Investor Group:

The European Investor Group has advised third affair retail armamentarium markets for 8 years. Its analysis uncovers developing trends in third affair armamentarium accumulation and administration through asset managers above Europe. Twice a year, 900 interviews are conducted with controlling accommodation makers from all of Europe's above banking centres.

About Metrinomics:

The interviews were conducted by Metrinomics GmbH. Metrinomics offers articles and systems for bazaar research. Metrinomics is headquartered in Berlin, with accessory offices amid in London and Beijing, and its barter are all-embracing suppliers of investment funds.