Investors hold a positive outlook over emerging market equities in the next 12 months what with continuing uncertainty within economic environments in developed Western countries, a survey by Skandia International shows. 

In the latest "International Advisor Confidence Barometer" conducted in the fourth quarter 2011, agriculture and resources were identified by all respondents as the "least likely to overheat" at least in the next year. Emerging market equities in North America generated mixed opinions in the short-term, but advisors in the Middle East and Latin America maintain that this is one of the most appealing territories for investors to consider. Other funds seeing strong flows in the recent months were those investing in emerging market equities, emerging Asia ex-Japan, as well as funds offering exposure to physical gold and shares. 

When it comes to gold, 41 per cent of the those surveyed believe it is nearing "bubble" territory, from just 25 per cent in the previous quarter. This is driven particularly by the continuing debt crisis in Europe, where advisors feel the metal has lost its appeal and has very little to offer. Elsewhere in the world, gold remains attractive and comes second to emerging markets with 11 per cent favouring it. 

"International financial advisers believe the best of future growth is most likely to come from opportunities presented by the Emerging economies," said Phil Oxenham, marketing manager at Skandia International.

"An understanding and appreciation of both the upsides and the downsides that form part of Emerging Markets’ investing is essential in order for such strategies to achieve success over the long term. The contrarian view on gold is interesting – and one to watch," added Oxenham.

The Skandia survey was based on responses of more than 450 advisors from Hong Kong, Singapore, Dubai, UK, Europe, Africa and Latin America.