Emerging Markets appears to be the sector most financial advisers are optimistic about for the New Year, Virgin Money has claimed.

In its annual Investors Intentions Index, Virgin Money has revealed a switch in attitudes from independent financial advisers (IFAs) with a third showing more optimism for the Emerging Markets sector.

This is compared to 30 per cent of IFAs feeling confident about UK Shares in 2010 following a rollercoaster year for the FTSE 100.

These figures represent a significant turnaround on last year’s findings, when 17 per cent of IFAs said they felt optimistic about Emerging Markets, while 50 per cent of IFAs revealed their confidence in UK Shares.

Meanwhile, an increasing number of IFAs are feeling more confident about the prospects of Far East Shares, with 22 per cent feeling positive about this sector, which represents a 10 per cent increase on last year’s figures.

Commenting, Grant Bather, Virgin Money spokesman said: “Optimism about Emerging Markets reflects the growing belief that economic recovery is underway worldwide while the UK has yet to officially emerge from recession. The MSCI Emerging Markets Index has doubled since March 2 although it has suffered in the wake of the Dubai crisis.

However, despite Virgin Money’s research showing a shift in attitudes, 83 per cent of IFAs will continue to advise clients to invest in UK Shares over the next three months, closely followed by investing in bonds, while 75 per cent would advise investing in Emerging Markets.

Meanwhile, attitudes towards cash investments have also changed in the past 12 months, as only six per cent of IFAs feel optimistic about this sector, compared to 19 per cent a year ago.

“The bigger picture however is that confidence is returning to shares after a tough year and that advisers and their clients are now willing to take risks in return for long-term gain. Advisers and their clients are no longer fixated on safety at all costs and at a potential cost to themselves,” Mr Bather added.

© Fair Investment Company Ltd