Adviser confidence in UK continues to wane, Skandia finds

Financial advisers are continuing to lose confidence in the UK economy, according to Skandia’s latest Adviser Confidence Barometer.

A poll carried out by the platform shows financial advisers rate their confidence in the economy at an average of 4.58 points out of 10. This has declined from the 5.1 points reported in the third quarter.

The eurozone debt crisis is regarded as the largest single threat, cited by 70% of respondents – compared with just 47% in the previous survey. Unemployment is the second most significant threat, followed by government spending cuts.

Peter Mann, chief executive of Skandia UK, says: “It certainly has been an interesting and turbulent year. Who would have predicted the unprecedented events witnessed across global markets, including the US debt crisis, EU debt crisis, and riots across Europe and at home?

“These events have all taken their toll on adviser confidence and concern in Europe continues to be [at the] forefront [of] people’s minds.”

Emerging markets remain the asset class that advisers have the most confidence in delivering returns over the coming year, with 24% voting in its favour. However, this is a 28% fall on the number showing faith in the class during the third quarter.

Skandia adds that UK fixed interest, commodities and gold are the classes that have attracted the most adviser confidence during the final quarter of the year.

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