Donald Trump’s failure to deliver on his proposed economic reforms is ranked the top concern for 2017 by wholesale and institutional investors, according to a survey by Royal London Asset Management.
The faltering of the so-called Trump trade was cited by 38 per cent of clients in the asset manager’s survey.
Brexit and political risks in the eurozone were also a concern for 22 per cent of investors, although rising interest rates and inflation were ranked as a threat by 26 per cent.
RLAM speculates that political risk could be what is driving nearly one in five of their clients to favour cash and absolute return strategies.
On the other hand, 58 per cent favour equities and 16 per cent favoured commodities, which RLAM said was likely driven by the inflationary environment.
When it came to income 24 per cent favoured multi asset and 22 per cent favoured equity, while 18 per cent favoured infrastructure.
Head of distribution at Royal London Asset Management, Rob Williams, says: “While the announcement of the UK general election and the results of the French election were rare cases of politics stabilising markets, politics and policy look set to maintain their impact on markets during the coming months.
Williams adds the asset manager is looking to meet client needs by broadening its offering in global equities and multi-asset credit funds.