As the EU referendum fast approaches, more than two thirds of IFAs are part of the "in" camp, according to research by GAM.

A 69 per cent majority of independent financial advisors are in favour of the UK remaining in Europe, according to a recent survey by Switzerland-listed asset manager GAM.

The survey was conducted at this month's GAM UK IFA roadshow, which hosted over 100 IFAs in Newmarket, Birmingham, Chepstow and London. It found that 31 per cent believe the UK would be better off voting "out".

As for Europe's equity markets, almost half of IFAs expect the region to be the best one for equity returns in 2016. The US and emerging markets trailed with a 16 per cent equal split of votes, while the UK stood at 6 per cent.

“Given the uncertainty around the ‘in-out‘ referendum and the potential for Brexit, we have a relatively cautious outlook on UK equities and are currently positioned moderately underweight. Sterling is likely to come under renewed pressure as investors are worried about the UK’s economic prospects,” said Charles Hepworth, investment director at GAM.

“We believe that many of the structural imbalances in the eurozone have now been corrected. One of the managers we hold in this space sees the best investment opportunities in Spain and Ireland, where the level of domestic demand has corrected to such a degree that a multi-year bounce in internal demand is inevitable.”

Politics was deemed to be this year's biggest risk factor for 34 per cent of respondents, followed by a global economic recession at 22 per cent, a euro crisis at 16 per cent, and a Chinese debt implosion at 14 per cent.