Fund managers detect value in equities
Fund managers are increasingly seeing value in equities but continue to be cautious with respect to bonds and cash, according to the latest research released by HSBC covering the fourth quarter of 2008.
The HSBC survey of global fund managers analysed 13 of the world’s leading fund management houses, their funds under management, their asset allocation view and their global money views, and according to the head of funds and investment at HSBC Bank Australia, Charles Genocchio, fund managers are seeing increasingly attractive valuations in most equity markets, including the US, Asia-Pacific and other emerging markets.
“Fears of global recession dampened both equity and bond market performances over the third quarter,” he said. “For emerging market equities in particular, which recorded the highest outflows, investors were concerned that a recession in developed markets could place emerging markets at risk.”
The HSBC survey found on equities, 50 per cent of fund managers held an overweight view, which was up from 22 per cent in the third quarter, while on bonds, 50 per cent of fund managers held an overweight view, up from 44 per cent.
On cash, 25 per cent of fund managers held an overweight view, down from 38 per cent in the third quarter.
According to Genocchio, the long-term positive view held by fund mangers towards Asia-Pacific and other emerging market equities showed they remained confident about the long-term growth opportunities in the regions.
“There appears to be a window for long-term retail investors to start re-entering the market gradually given the attractive valuations in certain geographies,” he said. “However, there remains a high level of uncertainty brought about by threats of slowing economic growth around the world.”
AUTHOR
Mike Taylor
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
