Barings sheds light on emerging market appetite

Emerging markets sign1Emerging market sentiment has increased among pension savers, with a fifth of people in a survey saying they are likely to invest some of their retirement savings in this country grouping in the next year.

The score is the highest since 2009 and has increased by 17% since last year, says Baring Asset Management.

Barings found 13% of the respondents who will invest in the long term want a portfolio covering all emerging markets.

When asked about specific emerging markets, 8% said they would likely invest in major Asian economies such as China, India and South Korea.

The same number favoured emerging European markets such as Poland.

Sentiment towards emerging markets is more positive among younger investors. Of those that might invest in emerging markets in the long-term, some 15% of 18-24 year olds said they would likely consider
investing in a single portfolio that covered all emerging markets compared to 8% of 55-64 year olds.

Rod Aldridge, head of Barings' wholesale distribution in Europe, Middle East and Africa, says: “Despite uncertainty around some emerging markets, fuelled in part recently by concerns over China’s economy and the impact on regional Asian economies, we believe that the asset class will grow in significance over the long term.”

Barings conducted online research of 1,548 non-retired British adults in late August.

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