Investors ignoring advisers on emerging markets

Investors have an average weighting of just 0.1% in emerging markets (EM) despite almost two thirds of IFAs considering it the best performing asset class, research suggests.

Additionally, 40% of advisers named emerging Asia as the most favoured region within the sector, followed by Brazil (20%) and Eastern Europe (7%). Despite the optimism, J.P. Morgan Asset Management (JPMAM) claims UK private investors typically hold just 0.1% of their portfolio in the region, missing out on the "biggest investment story of the century". The firm says changing demographics will help push EMs' GDPs from 34% to 43% by 2020 and increase world equity market cap from 12% to 26%. JPMAM head of UK sales Jasper Berens says: "It is encouraging to see IFA sentiment swing back ...