Financial advisers foresee a notable shift towards emerging and frontier markets over the next 18 months.
- A recent study indicates a potential 10-15% increase in allocations to these markets.
- Most advisers acknowledge that clients are currently under-invested in these sectors.
- The projected growth in these markets is expected to surpass developed markets.
- Experts believe this shift could offer new investment opportunities.
In the evolving landscape of global investments, financial advisers are increasingly recognising the potential of emerging and frontier markets. According to a recent study, a significant proportion of advisers anticipate a shift in client investment strategies within the next year and a half. This prospective realignment is grounded in a belief that these markets will yield higher returns compared to traditional developed markets.
Research undertaken by Pureprofile, and commissioned by a Vietnam-specific investment firm, suggests that 64% of surveyed wealth managers predict a 10% to 15% increase in client allocations to emerging markets. Notably, two-thirds of these managers concur that their clients are currently underweight in these sectors, indicating a substantial opportunity for growth and diversification.
The expectation that emerging and frontier markets will surpass the growth of established markets is shared by a staggering 92% of advisers. This foresight is supported by an analysis of global economic trends, where emerging markets are gradually blurring the lines that once distinctly separated them from their developed counterparts. Such perspectives foster a milieu of forward-thinking investment strategies, aimed at capitalising on these shifts.
This emerging consensus among advisers underscores the need to reassess prevailing investment strategies, and potentially embrace the volatility and unique risks associated with these markets. With a focus on long-term gains, this strategic pivot highlights the dynamic and ever-changing nature of global financial markets.
The anticipated growth in emerging markets signifies a strategic shift in investment focus, likely reshaping portfolios for long-term benefits.
