Canadians bullish on emerging markets

In a survey of 2,009 Canadian adults by Franklin Templeton Investments Corp, 38 percent said they think emerging markets offer the best investment opportunities over the next decade.

Canada was next with 25 percent, followed by developed international markets like the United Kingdom, Germany and Japan, at 6 percent. The United States was chosen by 3 percent.

As of June 30, Canadians had about C$8 billion ($8.25 billion) invested in emerging market equity funds, according to research firm Morningstar. By comparison, more than C$199 billion was invested in Canadian equity funds.

However, the survey found that 33 percent of investors plan to increase their exposure to emerging markets over the next year, compared with 8 percent who plan to lower their exposure.

"Franklin Templeton's research indicates Canadian investors are keenly aware of the promise and prosperity of the emerging market economies," Don Reed, chief executive of the Franklin Resources unit, said in a statement.

"These fast-growing economies are expected to drive global stock market returns in the years to come."

Within emerging markets, 45 percent of Canadians who currently had investments said they think Asia has the greatest promise. Nine percent preferred Latin America and 5 percent picked the Middle East and North Africa.

When asked what would make them more likely to invest in emerging markets, 40 percent said more education about global investment opportunities, and 37 percent said a better understanding of investment options that reduce risk.

The online survey of 2,009 adults was conducted on June 22 and June 23. The margin of error is plus or minus 2.07 percent, 19 times out of 20.

Copyright Reuters, 2011