According to a Franklin Templeton Investments Corp. study released this morning, Canadians believe the emerging markets – in particular Asian nations such as China and India – represent the best investment opportunities.
Research found that 38% of Canadians think emerging markets provide the greatest investment opportunity over the next decade. Canada was second at 25%.
Within the emerging markets, 45% of Canadians who have investments picked Asia as the region showing the greatest promise, with 29% choosing East Asia, including China, while 16% chose Southeast Asia, which includes India, Indonesia, the Philippines and Thailand.
Don Reed, president and CEO of Franklin Templeton said, “These fast-growing economies are expected to drive global stock market returns in the years to come.”
However, few Canadians are taking full advantage of the emerging markets opportunity within their investment portfolios. As of June 30, about $8 billion was invested in emerging market equity funds in Canada. In comparison, more than $199 billion was invested in Canadian equity funds, reported research firm Morningstar Inc.
According to the Investment Funds Institute of Canada, dollars invested in emerging market equities account for only 2.3% of the value of equity funds owned by Canadians.
Jennifer Harrison