PHILADELPHIA, Oct. 21, 2014 /PRNewswire/ -- Despite
ongoing geopolitical turmoil across a range of developing countries
and the impending hike in U.S. interest rates that is expected to
slow growth in emerging markets, financial advisors remain bullish
on emerging markets.
According to a survey of more than 100 financial advisors,
registered investment advisors (RIAs) and other investment industry
experts, conducted by Aberdeen Asset Management at the Financial
Planning Association (FPA) Annual Conference in late-September,
sentiment remains positive on both emerging market stocks and bonds
over the next 12 months. The vast majority of respondents (88
percent) indicated they have not reduced their clients' exposure to
emerging markets because of recent political turmoil in
Eastern Europe, the Middle East and elsewhere.
When presented with a range of asset classes, 41 percent of
those surveyed state they are most likely to increase allocations
to emerging market equities over the next 12 months. This was
higher than U.S. equities (31 percent), alternatives (14 percent)
and non-U.S. international developed market equities (14
percent).
"Although recent headlines can cause worry for the markets,
advisors recognize that an allocation to emerging market equities
over a long period of time is an important component of any growth
portfolio," said Devan Kaloo, Head
of Global Emerging Markets at Aberdeen Asset Management, whose team
manages a number of Aberdeen's
closed-end funds including the Aberdeen Emerging Markets Smaller
Company Opportunities Fund, Inc (NYSE: ETF). "We believe that
emerging market policy makers have learned from past crises and
used their experience to strengthen strategies and governance
standards." Kaloo adds, "We believe that closed-end funds
represent one of the best ways to invest in emerging markets as
their assets can be nimbly deployed to potential opportunities in
thinly traded markets."
Similar to emerging market equities, advisors expect emerging
market bonds to offer the most attractive risk adjusted returns
over the next 12 months as compared to other asset classes. Nearly
40 percent (38 percent) favor emerging market bonds. This compares
to U.S. high-yield bonds (24 percent), U.S. investment grade
corporate bonds (23 percent) and international developed market
bonds (15 percent).
The survey also found that 60 percent of advisors consider risk
tolerance the most important factor when evaluating investment
options for clients, to ensure that investors have a realistic
understanding of their ability to tolerate large swings in the
market. Other important factors considered by advisors when
determining asset selection include clients' investment time
horizon (32 percent) and fund expenses and fees (8 percent).
About Aberdeen Asset Management:
Aberdeen is a
global asset management group. Formed out of a management buy-out
in Aberdeen, Scotland, in
1983, Aberdeen is a FTSE 100 company operating
on-the-ground in over 23 countries
across Europe, Asia and the Americas.
The Group is defined by its focus on asset management, including
equities, fixed income, property and multi-asset portfolios. All
investment solutions are driven by its commitment to
straightforward, transparent investment approaches that stress
intensive, first-hand research and a long-term view.
As of August 31, 2014, Aberdeen
Group managed assets of US$550.0
billion for both institutions and private individuals.
Aberdeen Group is the world's largest manager of emerging market
closed-end funds offered around the world by both value and number
1. For more information on Aberdeen's closed-end funds available to U.S.
investors, see Aberdeen-asset.us/cef.
Further information about Aberdeen can be found
at www.aberdeen-asset.us and www.aberdeen-asset.ca in Canada.
In the United States,
Aberdeen Asset Management (AAM) is the marketing name for the
following affiliated, registered investment advisers: Aberdeen
Asset Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset
Management Ltd and Aberdeen Asset Management Asia Ltd, each of
which is wholly owned by Aberdeen Asset Management PLC.
"Aberdeen" is a U.S. registered
service mark of Aberdeen Asset Management PLC. Aberdeen Asset
Management ("AAM") is the marketing name in Canada for
Aberdeen Asset Management Inc.
In Canada, AAM is the marketing name for Aberdeen Asset
Management Inc., Aberdeen Fund Distributors, LLC, Aberdeen Asset
Management Asia Ltd and Aberdeen Asset Management Canada Limited.
Aberdeen Asset Management Inc. is registered as a Portfolio Manager
in the Canadian provinces of Ontario, Nova Scotia,
and New Brunswick, and as an Investment Fund Manager in the
Canadian provinces of Ontario, Quebec,
and Newfoundland and Labrador. Aberdeen Asset
Management Asia Limited and Aberdeen Asset Management Canada
Limited are registered as Portfolio Managers in Ontario.
Aberdeen Fund Distributors, LLC operates as an Exempt Market Dealer
in all provinces and territories of Canada. Aberdeen Fund
Distributors, LLC and Aberdeen Asset Management Canada Limited are
wholly owned subsidiaries of Aberdeen Asset Management Inc.
1 Fund Consultants LLC, February 2014. Based on analysis of emerging
market closed-end funds offered in multiple jurisdictions as of
December 31, 2013; data provided by
Morningstar Inc.
Logo -
http://photos.prnewswire.com/prnh/20121106/NE07292LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aberdeen-survey-finds-financial-advisors-remain-bullish-on-emerging-markets-despite-headwinds-346247328.html
SOURCE Aberdeen Asset Management Inc.