Emerging Market optimism grows amongst IFAs Go compare with our comparison table

Emerging Market optimism grows amongst IFAs

03 April 2010 / by Andy Davies

IFAs (Independent Financial Advisers) are taking a bullish outlook towards Emerging Markets after growing sceptical about the prospects of UK shares, according to Virgin Money's Investor Intentions Index.

In its latest index, 42 per cent of IFAs are feeling optimistic about Emerging Markets, compared to 32 per cent three months ago, while a quarter of IFAs are now feeling confident about the Far East – representing an increase of four per cent in the last quarter.

In contrast, UK shares have seen their popularity fall as a growing number of IFAs become concerned about the UK's economic recovery. In the past three months, the percentage of IFAs feeling confident about this sector has decreased by seven per cent to 23 per cent.

Year on year figures show a marked turnaround for the Emerging Markets sector considering this time last year only a quarter of IFAs felt optimistic about this sector, compared to UK shares which had the backing of 39 per cent of IFAs.

Commenting, Grant Bather, Virgin Money spokesman said: "The MSCI Emerging Markets index has returned 57 per cent in the past year and while some commentators are concerned about a bubble in the traditional emerging markets such as China and India, advisers are still more optimistic about the sector than any other."

However, despite an increasing number of IFAs feeling negative towards UK shares, 74 per cent are still advising their clients to invest in this sector, while a further 73 per cent are advising them to make an investment in the Far East and Emerging Markets.  

Unsurprised by these findings, Mr Bather added: "Clients will always be more likely to invest in UK shares than other markets but it is clear that optimism about the performance of the UK is low among advisers. The Far East and Emerging Markets are regarded as better bets for outperformance in a year which will see a UK election and the uncertainty that causes."

© Fair Investment Company Ltd


 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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