Record numbers of pension savers are looking to emerging markets to boost their retirement pot

16th November 2015


Nearly one in five, or 18%, of non-retired people say they are likely to consider investing in emerging markets in the next year in respect of their retirement planning, claims new research from Baring Asset Management.

This year’s score was the highest since the group’s 2009 survey and a marginal increase on the 17% seen in 2014.

Of those that might invest in emerging markets in the long-term, the number of people looking to access them through one fund that covers all emerging markets also continues to rise as the analysis showed that 13% would look to invest in a single portfolio, up from 12% in 2014 and 8% in 2013.

When asked about specific emerging markets, the research found that 8% said they would likely invest in major Asian economies such as China, India and South Korea while the same number said emerging European markets such as Poland. Some 4% – double the number from the last year’s survey – said they would likely look at the even riskier frontier markets sector.

Sentiment towards emerging markets is, however, more positive among younger segments: of those that might invest in emerging markets in the long-term, some 15% of 18-24 year-olds said they would likely consider investing in a single portfolio that covered all emerging markets compared to 8% of 55-64 year olds.

Moreover, while 15% of 18-24 year-olds would look at BRIC (Brazil, Russia, India & China) economies, this falls to just 1% of pre-retirement 55-64 year olds.

Rod Aldridge, head of EMEA wholesale distribution at Baring Asset Management, said: “The emerging markets asset class represents a significant number of countries and a significant slice of the global economy. We believe it can form an important part of a balanced, risk-adjusted investment portfolio – as long as investors get proper financial advice and build a suitable portfolio for their particular requirements.

“Despite uncertainty around some emerging markets, fuelled in part recently by concerns over China’s economy and the impact on regional Asian economies, we believe that the asset class will grow in significance over the long term.”

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