Skandia International, the offshore arm of Old Mutual Wealth Management, said its quarterly International Adviser Confidence Barometer revealed advisers across the globe are much less positive about the state of the economy, giving an average “confidence score” of just 4.9 out of 10.
European and UK based advisers were some of the least positive about the state of the global economy than last quarter, with those in the UK reporting the biggest decline – falling from 5.5 to just 4.8.
Perhaps less surprisingly, given the economic backdrop, advisers from the UK and Europe were much less positive than those in Asia about their local market economies too. Advisers in Singapore, for example, report the highest confidence levels with a score of 6.8 out of 10.
Skandia said this sentiment is reflected in advisers’ confidence in asset classes with advisers betting emerging Asia equities will be the most likely to deliver the best investment returns over the next year. “Other emerging markets equities” was the second most popular investment sector followed by North American equities.
Phil Oxenham, marketing manager at Skandia International, comments on the findings: “Overall, these findings reflect the current subdued state of the world’s major economies.
“However, it is encouraging to see that advisers in Singapore remain upbeat about the prospects of their economic region. Clearly, the fears of global contagion and the continued instability within the Eurozone are troubling investors far and wide, including in Singapore – despite the healthy state of their region. However, it is important to recognise that depressed markets create investment opportunities which can reward those willing to accept some short term volatility.”
