Fund managers rethink safe haven investments
Most global fund managers have maintained a neutral view when it comes to their allocation to bonds and equities for the remainder of 2012, according to the latest HSBC Fund Managers' Survey.
Representing 16.7 per cent of global funds under management, 60 per cent of participants expressed a neutral view on equities for the December quarter, although 40 per cent were found to be bullish, due partly to the central banks' easing of policy supporting a desire among this group for more risky assets.
The report found 60 per cent of fund managers are overweight in North American equities while 57 per cent maintained neutral views on China amid policy easing and a predicted slowdown in growth.
Similarly, 75 per cent of respondents were bullish when it came to Asian bonds.
Bonds remained attractive particularly for yield-seeking investors, but equities have "long-term appeal underscored by the attractive dividend yield pickup over bonds", according to Geoff Pidgeon, head of global asset management for HSBC Bank Australia.
The report also found global emerging market bonds continue to be favoured by 70 per cent of fund managers (up from 50 per cent in the preceding quarter) and 90 per cent were found to be overweight in high-yield bonds.
"Historically, emerging market assets offered potential yield enhancement but were not considered a safe haven," Pidgeon said.
"However, the resilience of Asia's corporate debt fundamentals are now making Asian debt and bonds more appealing to investors."
AUTHOR
Staff Writer
Recommended for you
Perpetual’s new chief executive Bernard Reilly has told shareholders how he hopes to turnaround the firm’s asset management division with greater cost simplification and improvements for J O Hambro.
Schroders has appointed a new business development manager to its ranks, effective today, who joins from Perennial Partners.
Magellan and Hyperion are among 11 new entrants in RIAA’s list of responsible investment leaders for 2024, which recognises asset managers leading the ESG space.
Three in four Australian investors are looking to invest in international equity ETFs in the next 12 months, VanEck reports, as Betashares launches its latest product focused on the Nasdaq 100.
