EMERGING MARKETS IS THE GEOGRAPHY OF CHOICE FOR THE NEXT SIX MONTHS.
18 July 2012
18 July 2012: Research* from Legal & General Investments, one of the UK's largest investment providers, shows emerging markets to be the most popular geographical investment destination in the next six months, with two fifths (40%) of IFAs choosing it as the likely best performer in the short term.
The findings come from Legal & General Investments' annual What Matters Investment Index, which aims to investigate the views of the IFA community, tracking how sentiment and behaviour changes over time.
IFAs expect the second best performer over the next six months to be the United States with almost a fifth (18%) anticipating strong results in this region. This is closely followed by Asia Pacific (ex Japan) with a little over one in seven (14%) of the vote, whilst confidence in the UK is middling with only one in twelve (8%) expecting it to be the best performing through the next six months.
In contrast to the buoyancy felt about emerging markets, United States and Asia Pacific (ex Japan), IFAs are highly skeptical about the prospects for Europe with its ongoing economic difficulties. Only 3% of IFAs believe Europe will perform best in the next six months.
Simon Ellis, Managing Director, Legal & General Investments, said: "It is no surprise that Europe is the geography about which IFAs are most cynical when you consider the region's ongoing problems and lack of obvious resolution. With good growth and employment figures coming out of the United States, and the Presidential election cycle kicking into high gear, the optimism in this region is understandable."
He continued: "Emerging markets have delivered strong performance for some years and advisers clearly believe this trend will continue. Many clients want to invest in regions with higher rates of economic growth, and whilst recent investment performance has been weaker than in many developed markets the long term expectations are proving compelling."
Notes to editors* Figures from YouGov Plc. Total sample size was 203 IFAs. Fieldwork was undertaken between 1-10 March 2012. The survey was carried out online.
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
1. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at 31 December 2011, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also have over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
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