Offshore advisers feel more confidence in the shape of their local economies than in the global economy.
These latest confidence levels and responses are the findings of Skandia International’s survey of some 300 advisers based around the world.
The latest Offshore Adviser Confidence Barometer measured confidence levels in advisers’ local economies, which achieved a score of 6.2 compared with the outlook for the global economy which achieved 5.4 on a scale of 1-10 (10 being the highest degree of confidence).
The Barometer also shows that a third of offshore advisers fear global contagion to be the greatest economic threat to their local regions, whilst nearly a quarter feel rising inflation could have the greatest impact.
Few will be surprised to learn that 37% of advisers feel their clients have become more risk averse over the last six months as the outlook for investment growth continues to remain uncertain. When it comes to future investment returns, 25% of offshore advisers feel that emerging markets continue to offer the greatest potential, although this is significantly down from the last quarter’s results, when as many as 55% of advisers felt this to be the sector to deliver the best growth.
Other most favoured sectors were Gold (19.5%), Far East Equities ex Japan (15%) and Emerging Markets Debt (9%). Fixed Income was perceived as the asset class least likely to deliver positive returns in the next 12 months.
Marketing Manager Phil Oxenham, comments, “There is a lot of uncertainty around at the moment but it is good to see advisers’ outlook for their local economies remaining relatively positive.
Despite the continuing turmoil in world markets caused by slowing growth in the US and Eurozone economies, there are areas of strong economic activity, particularly in the developing economies and Asia, which present some great opportunities. The results of this survey clearly echo this view.”
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