The UK is the best investment prospect in Europe according to half of advisers who took part in a survey.

The latest research from Cofunds showed almost two thirds (61%) of advisers felt optimistic about the UK economy.

The Cofunds report stated: “As concerns about overseas markets prevail, it’s the UK that looks likely to be the key recipient of these inflows. More than three quarters (70%) of advisers cite the UK as one of their favoured investment regions for the remainder of 2015 and moving into 2016. This is followed by the US – favoured by half (51%) of advisers – with Europe (41%) and Asia (24%) following behind.

“Despite the anticipated interest rate rise and levels of debt in the economy, nine out of 10 advisers (90%) polled feel their clients are either neutral or fairly optimistic about the UK economic outlook moving into 2016, with just 7% sensing any pessimism among clients.

“Perhaps unsurprisingly then, 60% of advisers are recommending their clients keep their UK allocations unchanged, while almost a third (30%) are recommending an increase in exposure.”

Britt Holland–Ellice, head of commercial at Cofunds, said: “Over the last four quarters, we’ve seen UK sectors such as UK Equity Income steadily rise in our Sector Sales leaderboard. Our adviser research also echoes this behaviour, indicating that in times of market uncertainty UK investors are looking closer to home for investment security.”

Tony van Gool, director of sales at Artemis Fund Managers, said: “The UK stockmarket is a liquid and a broad one. The mega-caps in the FTSE 100 generate around two-thirds of their earnings overseas. That gives investors access to global growth and to emerging markets.

“Mid- and small-caps in turn could allow investors to profit from the domestic UK economy – one of the first to emerge from the financial crisis. Add to all this good corporate governance, an independent currency and reasonable valuations, and you have a market which abounds in opportunities for active stock-pickers.”