July 23, 2012
--- Financial advisers are more likely to recommend emerging
markets and dividend-producing equities, given the current low-yield
environment, a survey found. ---
Favored products include emerging market bond funds and
dividend-paying equities for clients, according to a survey by OppeneheimerFunds
Inc. The survey examined the investment challenges and opportunities advisers
see when managing portfolios for increasingly risk-adverse clients.
Advisers said they were most likely to recommend nontraditional approaches to
generate income to clients looking for investments in today’s low interest rate
environment. A full 84% of those surveyed said they were more likely to
recommend dividing-paying equities, and more than three-quarters (76%) cited a
willingness to recommend emerging market bonds or related bond funds over other
“Ongoing market volatility, low U.S. interest rates and the
many challenges surrounding retirement, like rising health care costs and
longer life expectancy, mean advisers are facing significant challenges
positioning their clients’ portfolios for long-term success,” said Lori Heinel,
chief investment strategist of OppenheimerFunds.
Half the advisers surveyed believe the best way to get
emerging market equity exposure is through funds investing directly in emerging
markets companies. Another 26% are inclined to use funds that invest in
companies domiciled in developed countries outside of the U.S., while 21%
prefer funds investing in large global multinational U.S. companies. Just 3% of
respondents said they don’t need emerging market equities exposure.