IFAs stand by equities in 2008

Research has shown that the majority of IFAs will be recommending Global, European and UK equities to their clients in 2008.

The findings from a poll of 904 IFAs conducted by Gartmore, M& G, Newton and Schroders at the seventh annual Joint Investment Forum revealed that 81% of respondents will be recommending UK equities, 77% will be recommending Global equities and nearly two thirds (65%) will be recommending European equities in 2008.

Given the recent turbulence in equity markets, these findings show that IFAs remain convinced of the long-term benefits of investing in the asset class and are looking to Global and European equity markets to offer clients more investment opportunities.

Investing for their clients’ income remains a priority for many IFAs with three quarters (75%) advocating income funds to achieve this. During these volatile times, diversification appears to be uppermost in many IFAs’ minds with 58% looking to recommend multi-manager funds and just over half recommending cash-based investments to clients. Expanding on this diversification theme, over a third of IFAs (39%) indicated that they would continue to recommend investment in international commercial property in 2008 whilst a healthy 32% stated that they would not discount UK commercial property investment over the next 12 months.