Four of the five countries in the Brics economic bloc have made it into the top five countries perceived by global investors as the best investment opportunities in the year ahead, the latest survey by the Chartered Financial Analysts (CFA) Society showed on Tuesday.
The yearly Global Market Sentiment Survey showed that, for the third year running, 33% of the 5 259 CFA charterholders and corporate executives – 131 from South Africa – surveyed believed the US offered the best equity investment opportunity, CFA Society member Nerina Visser told media at a briefing in Sandton.
This was followed by China (9%), which had been perceived as a good opportunity for investment over the past few years, as well as newcomers to the top five – India, Russia and Brazil – which secured the nod from 9%, 6% and 4% respectively of the respondents.
Only 1% believed South Africa offered the best equity opportunity. This was in line with the perceptions of Australia, Italy, Switzerland, Hong Kong and Singapore, besides others.
Meanwhile, the investment professionals expected the global economy to grow by an average of 2% in 2015, with France and Germany more optimistic with expectations of global growth reaching 2.6%. Hong Kong and Australia indicated expectations of 1.6% growth, while South African respondents believed that global growth would reach 2.2%.
China, India and Hong Kong expected regional growth to rise by 6.2%, 5.8% and 3.1% respectively. South Africa expected a 1.6% rise in economic growth, while Brazil expected a marginal 0.3% uptick in its economy this year.
Talking to what global investors expected would impact their local market, Visser said the majority of respondents indicated the progress of recovery in China and Europe.
The yearly survey also revealed that political instability, a rise in interest rates, weak developed economies and excess regulations emerged as the largest threats to the global economy, local markets and global capital markets in 2015.
However, political risks, including secessionist and nationalistic movements, and the impact from the demographic trend of ageing populations were deemed by 35% and 20% of the respondents respectively as the most underestimated risks that could negatively affect markets in the next five years.