Investors in a new survey expressed growing interest in raising their allocation to emerging market equities over the next 12 months.
Emerging Global Advisors reported Tuesday that its EM Investor Sentiment Survey score increased by 9% in the first quarter to 538 from 495 in the previous quarter.
Forty-four percent of respondents said they expected to increase their emerging markets allocation over the next year, up from 33% in the fourth quarter.
Ninety-one asset managers and financial advisors, some two-thirds managing more than $500 million in assets, participated in the digital survey between March 1 and April 1.
Thirty-seven percent of respondents said they currently allocated between 5% and 10% in emerging markets, and 36% allocated 1% to 5%.
Forty-eight percent of investors reported that their current allocation was about the same as 12 months ago, while 37% say theirs was lower. Half of those polled said they expected to maintain their current emerging market equity allocation over the next year.
Asked their outlook for emerging market equities over the next 12 months, 42% of investors were neutral, while 33% were positive and 25% negative.