Investor confidence in Emerging Markets

Investors have revealed their confidence in investing in Emerging Markets in 2010; recent research found more than half of Barclays Stockbrokers clients (53%) believe Emerging Markets will deliver the greatest returns on their investments this year.  The poll found that just over a quarter of investors (26%) think the UK is best-placed to deliver positive returns, with just a tenth favouring the US (10%).  Just 3% are confident that Europe will be the highest performer in 2010.

Further research among Barclays Stockbrokers clients found almost a quarter of investors (23%) consider investing in Emerging Markets to be key to their portfolio, while a further 36% say it is definitely on their investment ‘radar'. This compares to 42% of respondents who admit they are not yet convinced by Emerging Markets or who say it is not for them.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, says: "With ever-increasing coverage of Emerging Markets, it is not surprising for us to see growing client confidence in this area. Clients have clearly not been deterred by significant volatility over the last 18 months or so, and continue to look far and wide in order to achieve their desired investment goals. As the Emerging Market story becomes progressively more mainstream investors are finding that ETFs present an efficient low-cost way to gain exposure to areas that were previously difficult to access, and Emerging Market ETFs accounted for 18% of our purchases in the last quarter of 2009"

Barclays Stockbrokers clients also revealed the emerging market which they consider likely to perform the best is India (36%), while a quarter of those surveyed (24%) prefer Brazil, and almost a third (32%) back China.

Barbara-Ann King continued: "It is interesting to see our investors putting their confidence not only in the concept of investing in Emerging Markets, but also being confident in acknowledging their preference for investing in particular countries. Overall, our survey showed the highest proportion of clients reveal they are attracted to India for the best returns. As the second of the emerging market powerhouses in Asia, India is well positioned to emerge as one of the leading global economies, so it is positive to see our clients are looking to capitalise on this. The dynamics of India's economy are rich and varied, and with an average annual GDP growth rate of 5.8% across the past two decades, India has been one of the fastest growing economies in the world and looks well positioned to maintain that rate of development."