Fund managers sentiment for equities rises
The most recent HSBC Fund Manager's survey showed a sharp increase in the outlook of fund managers towards equities.
The quarterly survey showed that 50 percent of fund managers held a highly positive view on equities for the third quarter of this year compared to 40 percent in the previous quarter. In essence, the results indicated that four times as many fund managers held a more positive view on equities than bonds.
Moreover, despite the $US 38 billion or $AU 40.5 billion inflows to bond funds in the second quarter of 2010, fund managers forecast improved opportunities in selective equities during the third quarter this year.
The survey also noted that “no fund manager is underweight towards either equities of bonds.” Only 13 percent of the respondents held an overweight view on bonds in the third quarter.
Fund managers were discovered to hold an increasing positive view towards assets in fast-growing markets like Asia. From 38 percent in the second quarter, nearly 45 percent of the respondents were bullish on the Asia-Pacific equities story.
Survey figures showed that Greater China equities recorded outflows of about $US 625 million in the second quarter, representing the first outflow since the first quarter of last year.