BOSTON--(BUSINESS WIRE)--Columbia Threadneedle Investments announced today the results of its most recent Emerging Markets Investor Sentiment Survey, a semi-annual poll of investment managers and financial advisors focusing on their sentiment and equity allocations to emerging markets (EM). Findings reveal the most positive EM Investor Sentiment Score since the survey launched in early 2015. The score of 850 out of 1000 indicates that investors clearly have a positive outlook for emerging markets over the next 12 months. In fact, sentiment is up 35 percent from Q4 2016 and 72 percent from Q4 2015.
“We believe that a strategic approach to emerging markets can be beneficial for investors,” said Marc Zeitoun, Head of Strategic Beta at Columbia Threadneedle Investments. “This shift toward a more positive EM outlook among investors underscores the strong opportunities that can be uncovered in these markets. Of course, it is critical to invest strategically and understand the main drivers of growth, focusing on the emerging market consumer or reforms in India, for example.”
Sentiment and Allocation on the Rise
The majority (72 percent) of survey respondents have a positive outlook for emerging markets equities over the next 12 months, a significant shift both from Q4 2016 when 45 percent of respondents had a positive outlook and Q4 2015 when only 26 percent of respondents felt this way. One quarter of respondents have a neutral outlook and only 3 percent have a negative outlook for emerging markets in the next 12 months. As the sentiment among respondents has shifted, so have allocation expectations.
While current emerging markets allocation levels are between 1 and 10 percent (69 percent of respondents), advisors and investment professionals surveyed are trending toward higher allocations. For example, 36 percent of respondents have a higher EM allocation than they did 12 months ago and 58 percent expect to increase their EM allocation over the course of the next 12 months. Only 4 percent of respondents have a lower allocation today than 12 months ago and 3 percent expect to lower their allocation in the coming 12 month period. The majority (60 percent) of respondents did not have a change in allocation over the last 12 months, but only 38 percent do not plan to make changes in the next 12 months.
This survey was conducted online during the month of June 2017 among 220 financial advisors and investment professionals. More than 49 percent of survey participants manage more than $100 million in assets. The EM Investor Sentiment Score is an average based on the following: negative EM outlook scored as 0 points, neutral EM outlook scored as 500 points and positive EM outlook scored as 1000 points for each respondent.
About Columbia Threadneedle Investments:
Columbia Threadneedle Investments is a leading global asset management group that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $473 billion1 of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.
Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc. (NYSE: AMP).
1As of June 30, 2017.
The content of this presentation is presented for general information purposes only. Nothing contained herein should be considered a recommendation or advice to purchase or sell any security. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and it should not be relied on as such or be the basis for an investment decision. The statements and opinions expressed are those of Columbia Management Investment Advisers, LLC and are as of the date of this presentation. All information is historical and not indicative of future results, and subject to change. This presentation may include estimates, projections and other “forward-looking statements”. Due to numerous factors, actual events may differ substantially from those presented. Columbia Management Investment Advisers, LLC assumes no duty to update any such statements. Past performance does not guarantee future results.
MSCI Emerging Markets (EM) Index is designed to measure the equity market performance in global emerging markets. S&P 500 Index is a broad-based measure of U.S. stock market performance. Strategic Beta is a category of beta products designed to outperform a market benchmark or provide a specialized exposure. One cannot invest directly in an index.
Effective September 1, 2016, Emerging Global Advisors, LLC was acquired by Columbia Management Investment Advisers, LLC (CMIA). In connection with the acquisition, CMIA is the investment manager to EGShares Funds as of that date. On October 19, 2016, the EGShares Funds were renamed as Columbia Funds. The Funds are distributed by ALPS Distributors, Inc., which is not affiliated with CMIA. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
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