Global fund managers are bullish on domestic equities, with 75 per cent of them holding an ‘overweight’ view in the first quarter, an HSBC survey said.
“As many as 75 per cent of global fund managers in our latest Fund Managers Survey are holding an overweight view towards equities in the first quarter of 2013, while a quarter maintains a neutral outlook,” it said. No manager is underweight on domestic equities. While ‘overweight’ generally implies a ‘buy’ recommendation, ‘underweight’ implies ‘sell’. Six of 10 fund managers are underweight on cash as an asset class, while a little over a third are underweight on bonds. No fund manager holds a positive outlook on bonds or cash.
“The bearish sentiment of global fund managers towards cash underlines potential opportunities in the market. They are looking at stronger prospects in equities and selective fixed income markets, based on valuation and on the back of improving economic indicators in the US and China,” HSBC’s Asia Pacific Regional Head for wealth development Vineet Vohra said.
While 70 per cent of fund managers are overweight on North American equities in the first quarter of 2013 due to relatively resilient US economy, more fund managers are holding a positive outlook towards Asia-Pacific ex-Japan and Greater China equities. “The survey also highlights regions that continue to offer strong growth opportunities in 2013. Signs of recovery in the US and the bottoming out of Chinese economy are pointing to potential upside in North American and Greater China equities,” Vohra said.