UK adviser sentiment shifts towards US equities

New_York_stock_exchangeUS, Asian and emerging market equities came out as the top choices for UK intermediaries and investment professionals in a survey of their investment sentiment.

Ninety-four per cent of financial advisers said US stocks were a favourable investment opportunity for their clients, while 91% chose emerging markets and Asia.

The number in favour of US equities in the most recent survey, which was carried out among 78 investment professionals in May and June, was up from 89% in the last survey, which was carried out among 111 professionals in February and March.

Baring Asset Management, which publishes the results in its Barings Investment Barometer report, found 59% of professionals that were surveyed were either ‘quite’ or ‘very’ unfavourable to European equities.

Asked what they were doing to help their clients through the current market volatility, nearly two-thirds (64%) of investment professionals said that portfolio diversification had become key.  This was closely followed by advisers who were encouraging more regular reviews of investment portfolios to make sure that risks were properly managed (44%).

Just over a third (36%) of intermediaries had increased the level of risk/return analysis, while 31% of respondents said they had been encouraging investment in multi-asset products.

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