Eurozone crisis is the biggest concern to Middle East intermediaries
- United Arab Emirates: Monday, March 11 - 2013 at 16:08
- PRESS RELEASE
Optimism regarding global economic growth prospects has increased in the last year among Middle East intermediaries according to the latest poll carried out by Invesco Asset Management Limited, however their biggest concern for global financial markets is the Eurozone crisis.
Furthermore, currently the most favoured asset class for the year ahead by intermediaries in the region is equities (54%).
This is followed by property (20%) - tying into the cultural preference of investing in tangible assets - and bonds (19%).
However, despite the optimism that is evident among intermediaries, it seems a third (34%) of their clients are unsure about what to do with their portfolios in current market conditions in terms of buying, selling or holding assets, while over a third (36%) have chosen to make no changes.
Nick Tolchard, Head of Invesco Middle East, commented, "The outlook for global economic growth among intermediaries is encouraging and suggests a shift in sentiment despite the continuing reverberations of the Arab Spring. However, what these results also show is that there is no clear view among clients and furthermore, many are unsure how to manage their portfolios in the current investment climate. This is an opportunity for the advisory community to speak to clients about their current asset allocation and their options in the current market environment."
The poll revealed that two in five (39%) intermediaries believe the Eurozone crisis is the biggest issue facing global financial markets, more than Central bank policies (20%) and fiscal tightening in the US (20%). Geopolitical uncertainty and tension, paramount in the Middle East in 2012, is a concern for less than one in five (17%) intermediaries and professional investors.
Nick Tolchard, Head of Invesco Middle East, commented, "What this shows is the Eurozone crisis is not just impacting Europe, but it continues to have a ripple effect across wider areas including the Middle East. Intermediaries in the region represent a diverse client base including Non-Resident Indians and Gulf Cooperation Council (GCC) locals, who we know from our annual study, exert a strong home market bias in their investment preferences, so it is interesting that the Eurozone is still a key concern for these advisers."
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