Financial adviser sentiment hits yearly low, says Skandia International
The International Adviser Confidence Barometer conducted by Skandia International, the offshore business of Old Mutual Wealth Management, has hit a 12 month low of just 4.9 out of 10, following a drop in confidence through the second quarter.
The drop in confidence was seen across all regions, SI reported. The eurozone crisis is cited as a key factor, causing confidence levels to drop significantly in both the UK and across Europe. The Barometer score for Europe was just 4.2 out of 10.
Advisers in Asia were more confident, particularly in Singapore, where the Barometer scored 6.8 out of 10.
Rated by asset class, advisers were most confident that emerging Asia equities will deliver the best returns through 2013, with other emerging markets in second place, followed by North American equities.
However, the European sovereign debt crisis is still seen as the biggest threat to economic growth and investor returns, with three quarters of advisers sharing this view, SI said.
Phil Oxenham, marketing manager at Skandia International, said:
“Overall, these findings reflect the current subdued state of the world’s major economies. However, it is encouraging to see that advisers in Singapore remain upbeat about the prospects of their economic region. Clearly, the fears of global contagion and the continued instability within the eurozone are troubling investors far and wide, including in Singapore – despite the healthy state of their region. However, it is important to recognise that depressed markets create investment opportunities which can reward those willing to accept some short term volatility.”