The Markets May 10, 2011

Advisers Move Into Equities, Away from Treasuries

Advisers will be advising clients to move into domestic equities, emerging market equities, and global developed market equities and away from Treasury bills, U.S. fixed income, and cash, according to a new survey from Aberdeen Asset Management. 
Reported by

The survey of financial advisers across wirehouses, regional brokerage firms, independent wealth management shops and other investment advice providers, found 46% of advisers plan to increase the allocation of clients’ assets to U.S. equities (S&P 500 Index); 38% plan to increase the allocation to emerging markets equities; and 34% to global developed equities.  

Contrarily, 58% plan to decrease their allocations to Treasury bills; 42% plan to decrease their allocations to U.S. fixed income; and 42% plan to decrease the allocation to cash.     

Regarding emerging market equities, 44% of advisers will recommend that clients allocate between 6-10% to those funds, while 25% of advisers polled will recommend clients allocate between 11-20% to emerging market equity funds.  As for percentages dedicated to emerging market fixed income funds, 43% of advisers will recommend clients allocate between 0-5% to emerging market fixed income funds; 35% of advisers stated they will recommend client allocate between 6-10% to emerging market fixed income funds. 

Most (60%) of the advisers prefer to invest in open-ended mutual funds when increasing allocations to international or emerging markets, while 24% stated a preference for exchange-traded funds (ETFs) when investing in international or emerging markets.  

This survey was conducted online within the United States by Harris Interactive on behalf of Aberdeen Asset Management Inc. between March 15, 2011 and March 22, 2011 among 805 investment professionals.  

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