Equities becoming 'less important for investors'

Investors are placing less of their private wealth in listed equities, as a result of a rapid shift of focus to emerging markets where these investments are less prominent.

That is according to market research firm McKinsey Global Institute, which estimates that 15 per cent of money is put into equities in these territories, compared to between 30 and 40 per cent in more mature markets.

On top of this, demand for listed equities could also fall in mature markets, as a result of ageing populations, shifting pension regimes and the growing popularity of alternative investments, as well as new financial regulations, it claimed.

Looking at the next decade, McKinsey estimated that the share of global financial assets held in listed equities could fall from 28 per cent to 22 per cent between 2010 and 2020.

At present, it is estimated that approximately more than $55 trillion (£35.9 trillion) of the $198 trillion invested in global assets is placed in equities.

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