Investors have an average weighting of just 0.1% in emerging markets (EM) despite almost two thirds of IFAs considering it the best performing asset class, research suggests.
Additionally, 40% of advisers named emerging Asia as the most favoured region within the sector, followed by Brazil (20%) and Eastern Europe (7%).
Despite the optimism, J.P. Morgan Asset Management (JPMAM) claims UK private investors typically hold just 0.1% of their portfolio in the region, missing out on the "biggest investment story of the century".
The firm says changing demographics will help push EMs' GDPs from 34% to 43% by 2020 and increase world equity market cap from 12% to 26%.
JPMAM head of UK sales Jasper Berens says: "It is encouraging to see IFA sentiment swing back in favour of emerging markets as the case to invest in the region is a compelling one.
"However, UK investors are structurally underweight in the biggest investment story of the century.
"This should be addressed. I would like to see the weighting apportioned to emerging markets in a typical UK investor portfolio better reflect the level of investor sentiment toward the region."
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