The latest HSBC global fund manager survey has shown a significant move away from equities in favour of cash and bonds, during the June quarter of 2008.
The total estimated fund outflow from equity funds during the quarter was $US50 billion. This was tempered somewhat by net inflows into balanced and money funds, that reached $US15 billion and $US11 billion respectively.
There was a net estimate outflow of $US28 billion for the period, which represented a 0.67 per cent fall in funds under management (FUM) compared to the March quarter.
Fund managers participating in the study were particularly unimpressed with Asia Pacific ex-Japan equities which experienced a 24.8 per cent fall in FUM for the June quarter.
“Fund outflows in the second quarter are indicative of investors’ concerns about the warning signs of inflation and economic slowdown in Asia,” HSBC Bank Australia head of funds and investments Charles Genocchio said.
“Investors continue to take conservative positions, moving away from volatile equity markets to the safe havens of bonds and cash,” he said.
The trend away from equities looks set to continue, with 44 per cent of participants saying they will take an underweight position in the asset class for the coming quarter.
Conversely, 44 per cent of respondents indicated they would be employing an overweight position in bonds over the next three months.
The survey analysed the FUM and views of 12 of the leading global fund managers that accounted for about 17 per cent of the estimated total global FUM.
