Fund managers have increased confidence in equities, an HSBC survey shows.
The percentage of fund managers that hold a positive view on equities has risen from 33 per cent in the final quarter of 2009 to 50 per cent in the first quarter of 2010, an HSBC survey of 13 of the world's leading fund management houses has revealed.
The number of respondents who were bullish on greater China equities also rose from 57 per cent in the previous quarter to 75 per cent, while 70 per cent retained an overweight view on Asia-Pacific ex-Japan equities.
Six out of ten fund managers were positive about emerging markets equities, while half of those surveyed were also bullish about North American equities - more than double the number of respondents with an overweight view last quarter.
"We see appetite for equities returning as increased signs of economic recovery are evident in emerging markets," HSBC Australia head of global investments Charles Genocchio said.
"This trend is particularly true within the Asia-Pacific, where growth is forecast to be sustainable. In addition, with bonds achieving record gains in 2009, fund managers have turned cautious towards this asset class and are looking to equities for growth."
According to the survey, fund managers were less optimistic about bonds as an investment class, with 56 per cent of respondents taking a neutral view.
Of the bond classes, global emerging markets/high-yield bonds posted the biggest change in outlook, with 63 per cent of fund managers taking a neutral view versus 14 per cent last quarter, and 38 per cent taking an overweight view, down from 71 per cent last quarter.
"Investors will continue to focus on the short term, maintaining the flexibility to change course as market conditions change," Genocchio said.
This strategy will allow them to rebalance their portfolios, take quick gains and capture new growth opportunities, he said.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
Home delivered!
Daily news, weekday mornings
Get the day's news delivered direct to your inbox. Register here (it's free!) and choose 'yes' to receive the InvestorDaily newsletter.
