UK investors have highlighted the eurozone debt crisis as the factor most likely to impact their investment returns, the Investment Management Association says.
The trade body’s research also shows just 11% of UK investors plan to invest in the eurozone in the next twelve months, with the region ranking fourth after the Far East (21%), emerging markets (27%) and the UK (51%).
Only 3% expect the eurozone will produce the best returns. When asked which economic impact they are most concerned about, 44% named the European debt crisis.
Investors maintain a low exposure to debt issued by Greece, Italy, Portugal and Spain.
The debt exposure to Greece and Portugal is just 0.01% of the total funds under management of the global bonds sector, respectively. Spain accounts for 0.74% and Italy for 2.17%.
“Our research into investor perspectives shows that retail investors remain wary, citing the eurozone debt crisis as the key factor likely to impact their investment returns in the year ahead,” says Richard Saunders, the chief executive.
“However, history shows that UK investors tend to hold their investments in periods of volatility.”
©2011 funds europe