US and emerging markets lead 2012 investment targets

Asset allocators are expected to channel more money towards emerging market, US and global equities in the coming months, a poll of investors shows.

Richard Romer-Lee
Richard Romer-Lee

A survey of IFAs, multi-asset managers and wealth managers carried out at the recent Alpha Generators roadshow found most respondents were anticipating increasing their allocation outside of the UK and Europe.

Some 61% of asset allocators say they will add to their positions in emerging market equities, while 58% will increase weightings in global stocks and 57% will boost holdings in the US.

In addition, 74% of respondents say the eurozone debt crisis is the main factor affecting UK returns for the rest of the year, while low economic growth was cited by 41%.

Richard Romer-Lee, joint managing director of Old Broad Street Research, says: “These concerns are clearly driving asset allocation decisions, with advisers looking to increase their exposure to non-European markets, such as the developing economies of Asia, Brazil, Russia, India and China, as well as the United States.”

The survey also shows just 8% of asset allocators are concerned about the impact of rising inflation on returns. Last year, 70% were worried by this.