The majority of global fund managers took an overweight view on assets in fast-growing regions such as the Asia Pacific excluding Japan and emerging markets overall in the last quarter of 2010, according to a survey by HSBC.
In the fourth quarter of 2010, 75 per cent of fund managers were overweight on Asia-Pacific ex Japan equities, up from 44 per cent in the third quarter, while 75 per cent were overweight on emerging markets equities, up from 67 per cent in the third quarter.
Meanwhile 67 per cent of fund managers were overweight on Greater China equities, 60 per cent were overweight on Asian bonds, with 83 per cent overweight on Global Emerging Markets/High Yield bonds.
HSBC said about 50 per cent of fund managers continued to hold an overweight view on equities, while 57 per cent were underweight on cash in comparison to 88 per cent in the third quarter of 2010.
HSBC Australia head of global investments Geoffrey Pidgeon said fund managers’ decreased appetite for cash was a sign of improved confidence in the overall economic outlook.
“Despite continued market uncertainty and volatility, appetite for equities remains strong yet selective towards regions of higher growth,” Pidgeon said.
“We expect that the focus on the stronger economies of Asia, like Greater China, and the emerging markets will continue through to the beginning of 2011 as growth in developed markets remains lacklustre.”
HSBC’s quarterly Fund Managers’ Survey analysed 13 of the world’s leading fund management houses on the basis of funds under management (FUM), asset allocation views and global money flows.
The net money flow estimates are derived from movements in FUM versus index movements in the equivalent class.
