According to the survey, 97% of the advisors recognize the importance of emerging markets exposure.
Further, it has been revealed that advisors are increasingly likely to recommend less traditional income-producing assets given the current low yield environment and the favored products include emerging market bond funds and dividend-paying equities for clients.
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Also, 84% of advisors are more likely to recommend dividing-paying equities and 76% of advisors cited a willingness to recommend emerging market bonds or related bond funds over other asset classes.
"Ongoing market volatility, low US interest rates and the many challenges surrounding retirement like rising healthcare costs and longer life expectancy, mean advisors are facing significant challenges positioning their clients’ portfolios for long-term success," said Lori Heinel, OppenheimerFunds chief investment strategist.
Additionally, 26% of advisors are inclined to use funds that invest in companies domiciled in developed countries outside of the US, while 21% prefer funds investing in large global multi-national US companies. Only 3% of the respondents said that they don’t need emerging market equities exposure.
52% of the advisors surveyed agreed that protecting clients from downside risk resulting from continued market volatility is their greatest challenge today. While 19 and 18%, respectively, are challenged by managing clients’ ongoing fears of investing in equity markets and helping clients earn real yield on their fixed income portfolios consistent with their needs.
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By GlobalData
