UK now seen as safe haven, IMA poll suggests

Retail investors will likely view the UK as a safe haven from the uncertainty expected to blight the eurozone during 2012, according to the Investment Management Association (IMA).

Research by the trade association shows 44% of investors expect the eurozone debt crisis to have the largest impact on their returns over the coming 12 months.

This is double the 22% worried about the risk of the UK falling back into recession.

Most investors plan to add to their portfolios during 2012, the poll finds. Some 51% intend to increase their exposure to the UK, compared with just 11% looking to add to their eurozone allocation.

Richard Saunders, the chief executive of the IMA, says: “Almost two-thirds of UK investors plan to add to their portfolios over the course of the next year.

“These investors appear to believe the UK will be a safe haven in a climate of increasing market volatility.”

The poll also reveals that 11% of investors are concerned by a renewed banking crisis in 2012, 10% fear the US heading back into recession and 6% believe global inflation is a major risk.

Deflation, a slowdown in the Chinese economy and instability in the Middle East are considered to be other leading threats to returns.

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