Asian stocks deliver 37 per cent return for investors
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Investors who chose to invest in Asia Pacific equities following the EU referendum will have received greater returns than those who invested in commodities in the past year, according to recent analysis of the markets.
According to research conducted by investment firm Fidelity International, Asia Pacific equities delivered 36.89 per cent return in the past 12 months, with Emerging Market Equities just behind at 36.23 per cent and European equities returning 35.75 per cent.
In fact, the research revealed that those who invested £10,000 in the FTSE 100 on the day of the referendum results would have received a 26 per cent boost, or an increase to £12,565.
Unlike equities, the value of the pound did fall following Britain's vote to leave the EU and is yet to return to previous levels. However, this weaker pound has resulted in positive news for the country's exports and those investing overseas. In fact, almost 70 per cent of the revenue for FTSE 100 firms is currently secured abroad, which means they make the most from their equities when the sterling is weaker.
Commenting on the results of the analysis, Tom Stevenson, investment director for Personal Investing at Fidelity International, suggested that the result of the referendum was almost as much of a surprise as the reaction that followed. However, he argues that this should not have been the case given the significant impact of the pound's recent falls on the economy.
He said: "The fall in the pound has been the key driver of market returns in the UK over the past year and it will be the key driver of the economy and markets over the next 12 months."
"However, in the grand scheme of things, the UK plays a small part in the overall global economy and whatever the outcome of the Brexit negotiations, the US economy will continue to recover, Europe will remain on the mend and emerging markets will continue to outstrip the growth in the developed world," he added.
As a result, Mr Stevenson suggests that it's best for investors to have a widely diversified portfolio, which the recent analysis indicates has been found to be the most successful type within the past 12 months.