The latest survey gauging the investment sentiment of the largest global fund managers in the world has revealed a resounding overweight view towards North American equities in the first quarter of 2011.
The HSBC Fund Managers' Survey of March 2011 showed 100 per cent of participants in the study were taking an overweight attitude when it came to North American equities.
In contrast to this sentiment only 50 per cent of managers were positive towards Asia-Pacific ex-Japan equities over the period, down from 75 per cent in the last quarter of 2010.
In line with this mood 43 per cent of managers were now feeling neutral towards Greater China equities during the 2011 March quarter that was up from 33 per cent recorded in the final quarter of last year.
"HSBC Fund Managers' Survey shows a significant change in investor confidence. All respondents are bullish on equities, and none on bonds or cash. Fund managers are looking to North American equities because of improving economic conditions, merger and acquisition activities and encouraging company reports," HSBC Bank Australia head of global investments Geoffrey Pidgeon said.
"At the same time, fund managers are lukewarm on Asia-Pacific ex-Japan due to concerns over rising inflation in the region, and less bullish on Greater China equities as the market takes in the impact of ongoing austerity measures to contain inflation," he added.
While Asian equities were not favoured Asian bonds seem to be a popular asset class with all respondents displaying a positive outlook in this area as opposed to 60 per cent last quarter.
The long-term view on the global economy remained positive although the recent events in the Middle East and Japan had dampened some short-term optimism.
The quarterly survey garnered the opinions of the 12 largest global fund managers determined on a funds under management basis.
