Financial advisers were already becoming increasingly risk averse in 2019, before markets were pummeled by Covid-19 in recent weeks.

The 2019 Natixis Investment Managers UK Portfolio Barometer, released today, analyses 50 model portfolios in the UK, and found advisers were in “risk off” mode during 2019 as they decreased their allocations to more volatile asset classes, as well as UK investments.

Allocations to equities fell 4.4 percent across the year, while real asset allocations were down 3.4 percent. They were replaced by a 3.1 percent average increase in fixed income allocation and alternatives (up 3.7 percent)...