US grows in popularity among active investors

The US is becoming increasingly popular among active investors amid signs a recovery may be underway, says the Association of Investment Companies (AIC).

Whereas only 6% of active investors considered the US to be the most attractive regional sector in 2011, the figure is now closer to 14% as the jobs market continues to show signs of improvement.

US non-farm employers created 227,000 jobs in February, with employment rising in the professional and businesses services, healthcare and social assistance, leisure and hospitality, manufacturing and mining sectors.

Annabel Brodie-Smith, communications director at the Association of Investment Companies (AIC), says: “At the end of 2011, investment company managers tipped the US to be one of the best performing regions this year, and it’s interesting to see that active investors are taking a similar position. With an upturn in the US jobs market, lifting confidence, they may well be right.”

“Investor confidence is relatively stable, but more active investors are inclined to invest in equity ISAs this year, perhaps reflecting the demand for income in this low interest rate environment.”

The AIC’s end of year fund manager poll in December 2011 revealed that 19% of investment company managers expected the US to outperform in 2012.

The UK remains the most popular regional sector, but investors are still keeping their market exposure at similar levels to those of 2011, although 45% have indicated they intend to change this over the coming months.