Almost two thirds of advisers feel optimistic about the UK economy, while half believe it is the best investment prospect in Europe, according to Cofunds’ research.
In total, 70 per cent of advisers cited the UK as one of their favoured investment regions for the remainder of 2015 and moving into 2016.
The platform said this is followed by the US, favoured by 51 per cent of advisers, while Europe and Asia followed, with 41 and 24 per cent respectively.
Despite the anticipated interest rate rise and levels of debt in the economy, nine out of 10 advisers polled felt their clients were either neutral or fairly optimistic about the UK economic outlook, with just 7 per cent sensing any pessimism among clients.
Unsurprisingly, 60 per cent of advisers are recommending their clients keep their UK allocations unchanged, while almost a third are recommending an increase in exposure.
Britt Holland–Ellice, head of commercial at Cofunds, said over the last four quarters, sectors such as UK Equity Income have steadily risen on the sector sales leaderboard.
“Our adviser research also echoes this behaviour, indicating that in times of market uncertainty UK investors are looking closer to home for investment security.”
Tony van Gool, director of sales at Artemis Fund Managers, said the UK stock market is a liquid and a broad one, with the FTSE 100 “mega-caps” generating around two-thirds of their earnings overseas, giving access for global growth and to emerging markets.
“Mid-caps and small-caps in turn could allow investors to profit from the domestic UK economy – one of the first to emerge from the financial crisis.
“Add to all this good corporate governance, an independent currency and reasonable valuations, and you have a market which abounds in opportunities for active stock-pickers.”
ruth.gillbe@ft.com
