Franklin Templeton finds divergence in investor concerns

Stressed outThe top three concerns of investors across the globe are the state of the global economy, government fiscal policy and the Eurozone debt crisis, according to research from Franklin Templeton Investments.

The 2015 Franklin Templeton Global Investor Sentiment Survey, which polled over 11,500 investors in 23 countries, found the state of the global economy to be the greatest worry for investors, with 38% citing this issue, while just under a third opted for government fiscal policy and the same proportion for the Eurozone debt crisis.

US and Canadian investors are most worried about the state of the global economy, followed by those from the Asia Pacific region. In contrast, Latin American investors are more concerned with government fiscal policy and inflation, while unsurprisingly the Eurozone debt crisis is the top concern in Europe.

Within Europe, Eurozone debt is the top investment concern for German, UK, French and Swedish investors. For Spanish and Italian investors, the most important issue is unemployment.

Commenting on the findings, David Zahn, head of European fixed income at Franklin Templeton Investments, says: “The world seems to be moving on from the Eurozone debt crisis while Europe remains firmly divided on the issue. The ECB QE program, combined with the firewalls put in place, reduces the likelihood of a Eurozone debt crisis but the survey findings indicate that investors in the core countries of the Eurozone have not taken this on board.

“However, investors in peripheral countries Spain and Italy have a different outlook. In our view, this highlights the opportunity for investors in an actively managed European fixed income portfolio to capture return through selective country allocation.”

Globally, equities are viewed to be the riskiest asset class in 2015 and over the next ten years, chosen by 35% of global investors, followed by the euro and by non-metal commodities. German investors think alternatives will be the riskiest asset class in 2015 and for the next ten years.

A report out today from the Organisation for Economic Co-operation and Development, says global growth could reach pre-crisis levels by the end of next year.

©2015 funds europe